Page:United States Statutes at Large Volume 92 Part 1.djvu/75

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92 STAT. 2 1

PUBLIC LAW 9 5 - 2 2 7 — F E B. 10, 1978 "SEC. 4952. TAXES ON TAXABLE EXPENDITURES.

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26 USC 4952.

" (a) T A X IMPOSED.—

" (1) O N THE FUND.—There is hereby imposed on each taxable expenditure (as defined in subsection (d)) from the assets or income of a t r u s t described i n section 501(e) (21) a tax equal to Ante, p. 15. 10 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the trustee out of the assets of the trust. " (2) O N THE TRUSTEE.—There is hereby imposed on the agreement of any trustee of such a t r u s t to the making of an expenditure, knowing that it is a taxable expenditure, a tax equal to 2 i ^ percent of the amount thereof, unless such agreement is not willful and is due to reasonable cause. The tax imposed by this paragraph shall be paid by the trustee w h o agreed to the making of. the expenditure. " (b) ADDITIONAL T A X E S. —

" (1) O N THE F U N D. — I n any case in which an initial tax is imposed by subsection (a)(1) on a taxable expenditure and such expenditure is not corrected within the correction period, there is hereby imposed a tax equal to 100 percent of the amount of the expenditure. The tax imposed by this paragraph shall be paid by the trustee out of the assets of the trust. " (2) O N THE TRUSTEE.—In any case in which an additional tax is imposed by paragraph (1), if a trustee refused to agree to a part or all of the correction, there is hereby imposed a tax equal to 50 percent of the amount of the taxable expenditure. The tax imposed by this paragraph shall be paid by any trustee w h o refused to agree to part or all of the correction. " (c) JOINT AND SEVERAL L I A B I L I T Y. — For purposes of subsections

(a) and (b), if more than one person is liable under subsection (a)(2) or (b)(2) with respect to the making of a taxable expenditure, all such persons shall be jointly and severally liable under such paragraph with respect to such expenditure. " (d) TAXABLE EXPENDITURE.—For purposes of this section, the "Taxable term 'taxable expenditure' means any amount paid o r incurred by a expenditure." t r u s t described in section 501(c) (21) other than for a purpose specified in such section. "(e)

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DEFINITIONS.—

" (1) CORRECTION.—The terms 'correction' and 'correct' mean, with respect to any taxable expenditure, recovering part or all or the expenditure to the extent recovery is possible, and where full recovery is not possible, contributions by the person or persons whose liabilities for black l u n g benefit claims (as defined in section 192(e)) are to be paid out of the t r u s t to the extent necessary to place the trust in a financial position not worse than that i n which it would be if the taxable expenditure h a d not been made. " (2) CORRECTION PERIOD.—The term 'correction period' means, with respect to any taxable expenditure, the period beginning with the date on which the taxable expenditure occurs and ending 90 days after the date of mailing of a notice of deficiency under section 6212 with respect to the tax imposed by subsection (b)(1), extended by— " (A) any period in which a deficiency cannot be assessed under section 6213(a), and " (B) any other period whicn the Secretary determines is reasonable and necessary to b r i n g about correction of the taxable expenditure.

Ante, p. 16.

26 USC 6212.

26 USC 6213.

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