§ 4963. Definitions

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1980

   Pub. L. 96–596 § 2(c)(1) · 94 Stat. 3469

   Enacted · 26 U.S.C. § 4963

   Added Pub. L. 96–596, § 2(c)(1), Dec. 24, 1980, 94 Stat. 3473, § 4962

   Source evidence

   Code source credit
   Added Pub. L. 96–596, § 2(c)(1), Dec. 24, 1980, 94 Stat. 3473, § 4962

   Enacted provision · exact public law section
   (1) In general.— Chapter 42 is amended by adding at the end thereof the following new subchapter: “Subchapter C— Abatement of Second Tier Taxes Where There Is Correction During Correction Period “Sec. 4961. Abatement of second tier taxes where there is correction. “Sec. 4962. Definitions. “SEC. 4961. ABATEMENT OF SECOND TIER TAXES WHERE THERE IS CORRECTION. “(a) General Rule.— If any taxable event is corrected during the correction period for such event, then any second tier tax imposed with respect to such event (including interest, additions to the tax, and additional amounts) shall not be assessed, and if assessed the assessment shall be abated, and if collected shall be credited or refunded as an overpayment. “(b) Supplemental Proceeding.— If the determination by a court that the taxpayer is liable for a second tier tax has become final, such court shall have jurisdiction to conduct any necessary supplemental proceeding to determine whether the taxable event was corrected during the correction period. Such a supplemental proceeding may be begun only during the period which ends on the 90th day after the last day of the correction period. Where such a supplemental proceeding has begun, the reference in the second sentence of section 6213(a) to a final decision of the Tax Court shall be treated as including a final decision in such supplemental proceeding. “(c) Suspension of Period of Collection for Second Tier Tax.— “(1) Proceeding in district court or court of claims.— If, not later than 90 days after the day on which the second tier tax is assessed, the first tier tax is paid in full and a claim for refund of the amount so paid is filed, no levy or proceeding in court for the collection of the second tier tax shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in paragraph (2) (and of any supplemental proceeding with respect thereto under subsection to)). Notwithstanding section 7421(a), the collection by levy or proceeding may be enjoined during the time such prohibition is in force by a proceeding in the proper court. “(2) Suit must be brought to determine liability.— If, within 90 days after the day on which his claim for refund is denied, the person against whom the second tier tax was assessed fails to begin a proceeding described in section 7422 for the determination of his liability for such tax, paragraph (1) shall cease to apply with respect to such tax, effective on the day following the close of the 90-day period referred to in this paragraph. “(3) Suspension of running of period of limitations on collection.— The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court with respect to any second tier tax described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court. “(4) Jeopardy collection.— If the Secretary makes a finding that the collection of the second tier tax is in jeopardy, nothing in this subsection shall prevent the immediate collection of such tax. “SEC. 4962. DEFINITIONS. “(a) First Tier Tax.— For purposes of this subchapter, the term ‘first tier tax’ means any tax imposed by subsection (a) of section 4941, 4942,4943,4944,4945,4951,4952,4971, or 4975. “(b) Second Tier Tax.— For purposes of this subchapter, the term ‘second tier tax’ means any tax imposed by subsection to) of section 4941,4942,4943,4944,4945,4951,4952,4971, or 4975. “(c) Taxable Event.— For purposes of this subchapter, the term ‘taxable event’ means any act (or failure to act) giving rise to liability for tax under section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4971, or 4975. “(d) Correct.— For purposes of this subchapter— “(1) In general.— Except as provided in paragraph (2), the term ‘correct’ has the same meaning as when used in the section which imposes the second tier tax. “(2) Special rules.— The term ‘correct’ means— “(A) in the case of the second tier tax imposed by section 4942(b), reducing the amount of the undistributed income to zero, “(B) in the case of the second tier tax imposed by section 4943(b), reducing the amount of the excess business holdings to zero, and “(C) in the case of the second tier tax imposed by section 4944, removing the investment from jeopardy. “(e) Correction Period.— For purposes of this subchapter— “(1) In general.— The term ‘correction period’ means, with respect to any taxable event, the period beginning on the date on which such event occurs and ending 90 days after the date of mailing under section 6212 of a notice of deficiency with respect to the second tier tax imposed on such taxable event, extended by— “(A) any period in which a deficiency cannot be assessed under section 6213(a) (determined without regard to the last sentence of section 4961(b)), and “(B) any other period which the Secretary determines is reasonable and necessary to bring about correction of the taxable event. “(2) Special rules for when taxable event occurs.— For purposes of paragraph (1), the taxable event shall be treated as occurring— “(A) in the case of section 4942, on the first day of the taxable year for which there was a failure to distribute income, “(B) in the case of section 4943, on the first day on which there are excess business holdings, “(C) in the case of section 4971, on the last day of the plan year in which there is an accumulated funding deficiency, and “(D) in any other case, the date on which such event occurred.”

2. 1987

   Pub. L. 100–203 title X § 10712(b)(3) · 101 Stat. 1330

   Inserted · 26 U.S.C. § 4963(a)(c)

   Pub. L. 100–203 inserted reference to section 4955 of this title

   Source evidence

   Code amendment note
   Subsecs. (a) to (c). Pub. L. 100–203 inserted reference to section 4955 of this title.

   Enacted provision · exact public law section
   (3) Subsections (a), (b), and (c) of section 4963 are each amended by striking out “4952,” and inserting in lieu thereof “4952, 4955,”.

3. 1996

   Taxpayer Bill of Rights 2

   Pub. L. 104–168 title XIII § 1311(c)(2) · 110 Stat. 1452

   Inserted · 26 U.S.C. § 4963(a)(c)

   Pub. L. 104–168 inserted “4958,” after “4955,”

   Source evidence

   Code amendment note
   Subsecs. (a) to (c). Pub. L. 104–168 inserted “4958,” after “4955,”.

   Enacted provision · exact public law section
   (2) Subsections (a), (b), and (c) of section 4963 are each amended by inserting “4958,” after “4955,”.

4. 2006

   Pub. L. 109–280 title XII § 1231(b)(1) · 120 Stat. 780

   Amended · 26 U.S.C. § 4963(a); 26 U.S.C. § 4963(c)

   Pub. L. 109–280, which directed the insertion of “4966, 4967,” after “4958,” in subsecs. (a) and (c) of section 4963, without specifying the act to be amended, was executed by making the insertion in subsecs. (a) and (c) of this section, which is section 4963 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress

   Source evidence

   Code amendment note
   Subsecs. (a), (c). Pub. L. 109–280, which directed the insertion of “4966, 4967,” after “4958,” in subsecs. (a) and (c) of section 4963, without specifying the act to be amended, was executed by making the insertion in subsecs. (a) and (c) of this section, which is section 4963 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (1) Section 4963 26 USC 4963. is amended by inserting “4966, 4967,” after “4958,” each place it appears in subsections (a) and (c).

   Effective date note
   Pub. L. 109–280, title XII, § 1231(c), Aug. 17, 2006, 120 Stat. 1098, provided that: “The amendments made by this section [enacting subchapter G of this chapter and amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 17, 2006].”

4 of 4 references resolved to an enrolled provision