Treasury Regulations (26 C.F.R.)
26 CFR § 53.4965-1
Overview.
# (a) Entity-level excise tax.
Section 4965 imposes two excise taxes with respect to certain tax shelter transactions to which tax-exempt entities are parties. Section 4965(a)(1) imposes an entity-level excise tax on certain tax-exempt entities that are parties to “prohibited tax shelter transactions,” as defined in section 4965(e). See § 53.4965-2 for the discussion of covered tax-exempt entities. See § 53.4965-3 for the definition of prohibited tax shelter transactions. See § 53.4965-4 for the definition of tax-exempt party to a prohibited tax shelter transaction. The entity-level excise tax under section 4965(a)(1) is imposed on a specified percentage of the entity's net income or proceeds that are attributable to the transaction for the relevant tax year (or a period within that tax year). The rate of tax depends on whether the entity knew or had reason to know that the transaction was a prohibited tax shelter transaction at the time the entity became a party to the transaction. See § 53.4965-7(a) for the discussion of the entity-level excise tax under section 4965(a)(1). See § 53.4965-6 for the discussion of “knowing or having reason to know.” See § 53.4965-8 for the definition of net income and proceeds and the standard for allocating net income and proceeds that are attributable to a prohibited tax shelter transaction to various periods.
# (b) Manager-level excise tax.
Section 4965(a)(2) imposes a manager-level excise tax on “entity managers,” as defined in section 4965(d), of tax-exempt entities who approve the entity as a party (or otherwise cause the entity to be a party) to a prohibited tax shelter transaction and know or have reason to know, at the time the tax-exempt entity enters into the transaction, that the transaction is a prohibited tax shelter transaction. See § 53.4965-5 for the definition of entity manager and the meaning of “approving or otherwise causing,” and § 53.4965-6 for the discussion of “knowing or having reason to know.” See § 53.4965-7(b) for the discussion of the manager-level excise tax under section 4965(a)(2).
# (c)
Effective/applicability dates. See § 53.4965-9 for the discussion of the relevant effective and applicability dates.
[T.D. 9492, 75 FR 38702, July 6, 2010]
Source: view the official text
In this part (40 sections)
- 53.4958-0 · Table of contents.
- 53.4958-1 · Taxes on excess benefit transactions.
- 53.4958-2 · Definition of applicable tax-exempt organization.
- 53.4958-3 · Definition of disqualified person.
- 53.4958-4 · Excess benefit transaction.
- 53.4958-5 · Transaction in which the amount of the economic benefit is…
- 53.4958-6 · Rebuttable presumption that a transaction is not an excess…
- 53.4958-7 · Correction.
- 53.4958-8 · Special rules.
- 53.4959-1 · Taxes on failures by hospital organizations to meet section…
- 53.4960-0 · Table of contents.
- 53.4960-1 · Scope and definitions.
- 53.4960-2 · Determination of remuneration paid for a taxable year.
- 53.4960-3 · Determination of whether there is a parachute payment.
- 53.4960-4 · Liability for tax on excess remuneration and excess…
- 53.4960-5 · [Reserved]
- 53.4960-6 · Applicability date.
- 53.4961-1 · Abatement of second tier taxes for correction within…
- 53.4961-2 · Court proceedings to determine liability for second tier…
- 53.4963-1 · Definitions.
- 53.4965-1 · Overview.
- 53.4965-2 · Covered tax-exempt entities.
- 53.4965-3 · Prohibited tax shelter transactions.
- 53.4965-4 · Definition of tax-exempt party to a prohibited tax shelter…
- 53.4965-5 · Entity managers and related definitions.
- 53.4965-6 · Meaning of “knows or has reason to know”.
- 53.4965-7 · Taxes on prohibited tax shelter transactions.
- 53.4965-8 · Definition of net income and proceeds and standard for…
- 53.4965-9 · Effective/applicability dates.
- 53.4968-1 · Excise tax based on investment income of certain private…
- 53.4968-2 · Net investment income.
- 53.4968-3 · Related organizations.
- 53.4968-4 · Applicability date.
- 53.6001-1 · Notice or regulations requiring records, statements, and…
- 53.6011-1 · General requirement of return, statement or list.
- 53.6011-4 · Requirement of statement disclosing participation in…
- 53.6060-1 · Reporting requirements for tax return preparers.
- 53.6061-1 · Signing of returns and other documents.
- 53.6065-1 · Verification of returns.
- 53.6071-1 · Time for filing returns.