1996 US Code
Title 26 - INTERNAL REVENUE CODE
CHAPTER 43 - QUALIFIED PENSION, ETC., PLANS
Sec. 4979A - Tax on certain prohibited allocations of qualified securities
View MetadataPublication Title | United States Code, 1994 Edition, Supplement 2, Title 26 - INTERNAL REVENUE CODE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 26 - INTERNAL REVENUE CODE CHAPTER 43 - QUALIFIED PENSION, ETC., PLANS Sec. 4979A - Tax on certain prohibited allocations of qualified securities |
Contains | section 4979A |
Date | 1996 |
Laws in Effect as of Date | January 6, 1997 |
Positive Law | No |
Disposition | standard |
Source Credit | Added and amended Pub. L. 99-514, title XI, §1172(b)(2), title XVIII, §1854(a)(9)(A), Oct. 22, 1986, 100 Stat. 2514, 2877; Pub. L. 101-239, title VII, §7304(a)(2)(D), Dec. 19, 1989, 103 Stat. 2353; Pub. L. 104-188, title I, §1704(t)(22), Aug. 20, 1996, 110 Stat. 1888. |
Statutes at Large References | 100 Stat. 2514 103 Stat. 2353 110 Stat. 1888 |
Public Law References | Public Law 99-514, Public Law 101-239, Public Law 104-188 |
§4979A. Tax on certain prohibited allocations of qualified securities (a) Imposition of tax
If there is a prohibited allocation of qualified securities by any employee stock ownership plan or eligible worker-owned cooperative, there is hereby imposed a tax on such allocation equal to 50 percent of the amount involved.
(b) Prohibited allocationFor purposes of this section, the term “prohibited allocation” means—
(1) any allocation of qualified securities acquired in a sale to which section 1042 applies which violates the provisions of section 409(n), and
(2) any benefit which accrues to any person in violation of the provisions of section 409(n).
(c) Liability for taxThe tax imposed by this section shall be paid by—
(1) the employer sponsoring such plan, or
(2) the eligible worker-owned cooperative,
which made the written statement described in section 1042(b)(3)(B).
(d) DefinitionsTerms used in this section have the same respective meaning as when used in section 4978.
(Added and amended Pub. L. 99–514, title XI, §1172(b)(2), title XVIII, §1854(a)(9)(A), Oct. 22, 1986, 100 Stat. 2514, 2877; Pub. L. 101–239, title VII, §7304(a)(2)(D), Dec. 19, 1989, 103 Stat. 2353; Pub. L. 104–188, title I, §1704(t)(22), Aug. 20, 1996, 110 Stat. 1888.)
Amendments1996—Subsec. (c). Pub. L. 104–188 amended directory language of Pub. L. 101–239, §7304(a)(2)(D)(ii). See 1989 Amendment note below.
1989—Subsec. (b)(1). Pub. L. 101–239, §7304(a)(2)(D)(i), struck out “or section 2057” after “section 1042”.
Subsec. (c). Pub. L. 101–239, §7304(a)(2)(D)(ii), as amended by Pub. L. 104–188, struck out “or section 2057(d)” after “section 1042(b)(3)(B)” in concluding provisions.
1986—Subsec. (b)(1). Pub. L. 99–514, §1172(b)(2)(A), inserted reference to section 2057.
Subsec. (c). Pub. L. 99–514, §1172(b)(2)(B), inserted reference to section 2057(d).
Effective Date of 1989 AmendmentAmendment by Pub. L. 101–239 applicable to estates of decedents dying after Dec. 19, 1989, see section 7304(a)(3) of Pub. L. 101–239, set out as a note under section 409 of this title.
Effective Date of 1986 AmendmentAmendment by section 1172(b)(2) of Pub. L. 99–514 applicable to sales after Oct. 22, 1986, with respect to which election is made by executor of an estate who is required to file the return of the tax imposed by this title on a date (including extensions) after Oct. 22, 1986, see section 1172(c) of Pub. L. 99–514, set out as a note under section 409 of this title.
Effective DateSection 1854(a)(9)(D) of Pub. L. 99–514 provided that: “The amendments made by this paragraph [enacting this section and amending section 1042 of this title] shall apply to sales of securities after the date of the enactment of this Act [Oct. 22, 1986].”
Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
Section Referred to in Other SectionsThis section is referred to in sections 409, 1042 of this title.
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