Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_4979a
Timestamp: 2020-06-01 21:49:34
Document Index: 238282120

Matched Legal Cases: ['§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979', '§ 4979']

Internal Revenue Code, § 4979A. Tax On Certain Prohibited Allocations Of Qualified Securities
§ 4979a
I.R.C. § 4979A(a) Imposition Of Tax —
I.R.C. § 4979A(a)(1) —
I.R.C. § 4979A(a)(2) —
there is an allocation described in section 664(g)(5)(A),
I.R.C. § 4979A(a)(3) —
there is any allocation of employer securities which violates the provisions of section 409(p), or a nonallocation year described in subsection (e)(2)(C) with respect to an employee stock ownership plan, or
I.R.C. § 4979A(a)(4) —
I.R.C. § 4979A(b) Prohibited Allocation —
For purposes of this section, the term “prohibited allocation” means—-
I.R.C. § 4979A(b)(1) —
any allocation of qualified securities acquired in a sale to which section 1042 applies which violates the provisions of section 409(n), and
I.R.C. § 4979A(b)(2) —
any benefit which accrues to any person in violation of the provisions of section 409(n).
I.R.C. § 4979A(c) Liability For Tax —
The tax imposed by this section shall be paid—-
I.R.C. § 4979A(c)(1) —
in the case of an allocation referred to in paragraph (1) or (2) of subsection (a), by—-
I.R.C. § 4979A(c)(1)(A) —
I.R.C. § 4979A(c)(1)(B) —
I.R.C. § 4979A(c)(2) —
I.R.C. § 4979A(d) Special Statute Of Limitations For Tax Attributable To Certain Allocations —
The statutory period for the assessment of any tax imposed by this section on an allocation described in subsection (a)(2) of qualified employer securities shall not expire before the date which is 3 years from the later of–-
I.R.C. § 4979A(d)(1) —
the 1st allocation of such securities in connection with a qualified gratuitous transfer (as defined in section 664(g)(1)), or
I.R.C. § 4979A(d)(2) —
I.R.C. § 4979A(e) Definitions And Special Rules —
I.R.C. § 4979A(e)(1) Definitions —
I.R.C. § 4979A(e)(2) Special Rules Relating To Tax Imposed By Reason Of Paragraph (3) Or (4) Of Subsection (a)
I.R.C. § 4979A(e)(2)(A) Prohibited Allocations —
I.R.C. § 4979A(e)(2)(B) Synthetic Equity —
I.R.C. § 4979A(e)(2)(C) Special Rule During First Nonallocation Year —
I.R.C. § 4979A(e)(2)(D) Statute Of Limitations —
The statutory period for the assessment of any tax imposed by this section by reason of paragraph (3) or (4) of subsection (a) shall not expire before the date which is 3 years from the later of—-
I.R.C. § 4979A(e)(2)(D)(i) —
I.R.C. § 4979A(e)(2)(D)(ii) —
(Added and amended Pub. L. 99-514, title XI, Sec. 1172(b)(2), title XVIII, Sec. 1854(a)(9)(A), Oct. 22, 1986, 100 Stat. 2514, 2877; Pub. L. 101-239, title VII, Sec. 7304(a)(2)(D), Dec. 19, 1989, 103 Stat. 2353; Pub. L. 105-34, title XV, Sec. 1530, Aug. 5, 1997, 111 Stat 788; Pub. L. 107-16, title VI, Sec. 656, June 7, 2001, 115 Stat. 38.)
2001 - Subsec. (a). Pub. L. 107-16, Sec. 656(c)(1), amended subsec. (a) by striking “or” at the end of par. (1), by striking the following language after par. (2): “there is hereby imposed a tax on such allocation equal to 50 percent of the amount involved.”, and inserting the language above.
Subsec. (c). Pub. L. 107-16, Sec. 656(c)(2), amended subsec. (c). Before amendment it read as follows:
“(c) Liability for Tax.-
“The tax imposed by this section shall be paid by--
“(2) the eligible worker-owned cooperative, which made the written statement described in section 664(g)(1)(E) or in section 1042(b)(3)(B) (as the case may be).”
Subsec. (e). Pub. L. 107-16, Sec. 656(c)(3), amended subsec. (e). Before amendment it read as follows:
“(e) Definitions
“Terms used in this section have the same respective meaning as when used in section 4978.”
1997 - Subsec. (a). Pub. L. 105-34, Sec. 1530(c)(15), amended subsec. (a). Prior to amendment it read as follows:
“(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.”
Subsec. (c). Pub. L. 105-34, Sec. 1530(c)(16), amended subsec. (c). Prior to amendment it read as follows:
“(c) Liability for tax
“(2) the eligible worker-owned cooperative, which made the written statement described in section 1042(b)(3)(B).”
Subsec. (d). Pub. L. 105-34, Sec. 1530(c)(17), redesignated subsec. (d) as subsec. (e) and added a new subsec. (d).
1989 - Subsec. (b)(1). Pub. L. 101-239, Sec. 7304(a)(2)(D)(i), struck out ‘or section 2057’ after ‘section 1042’.
Subsec. (c). Pub. L. 101-239, Sec. 7304(a)(2)(D)(ii), as amended by Pub. L. 104-188, Sec. 1704(t)(22), struck out ‘or section 2057(d)’after ‘section 1042(b)(3)(B)’.
1986 - Subsec. (b)(1). Pub. L. 99-514, Sec. 1172(b)(2)(A), inserted reference to section 2057.
Subsec. (c). Pub. L. 99-514, Sec. 1172(b)(2)(B), inserted reference to section 2057(d).
Amendments by Sec. 656(c) of Pub. L. 107-16 applicable to plan years beginning after December 31, 2004. Sec. 656(d) of Pub. L. 107-16 provided the following exception:
“(2) EXCEPTION FOR CERTAIN PLANS.--In the case of any--
“(A) employee stock ownership plan established after March 14, 2001, or
“(B) employee stock ownership plan established on or before such date if employer securities held by the plan consist of stock in a corporation with respect to which an election under section 1362(a) of the Internal Revenue Code of 1986 is not in effect on such date,
“the amendments made by this section shall apply to plan years ending after March 14, 2001.”
Amendment 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.
Section 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).’