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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
• The furnishing of goods, services, or facilities by a 8. A trust or estate in which persons described in 1, 2, 3,
disqualified person to such a trust is not an act of self-dealing 4, or 5 hold more than 35% of the beneficial interest.
if the furnishing is without charge and if the goods, services,
or facilities so furnished are used exclusively for the For purposes of items 3a and 6 above, indirect
purposes specified in section 501(c)(21)(A); and stockholdings are taken into account if they would be taken
• The payment of compensation (and the payment or into account under section 267(c), except that, for purposes
reimbursement of expenses) by such a trust to a disqualified of this paragraph, section 267(c)(4) is treated as providing
person for personal services that are reasonable and that the members of the family of an individual are only those
necessary to carry out the exempt purpose of the trust is not individuals described in item 5. For purposes of items 3b and
an act of self-dealing if the compensation (or payment or c, 7, and 8, the ownership of profits or beneficial interests is
reimbursement) is not excessive. See Regulations section determined by the rules for constructive ownership of stock
53.4951-1 for additional information. provided in section 267(c) (other than paragraph (3)), except
that section 267(c)(4) is treated as providing that the
Taxable period. The term “taxable period” means, with members of the family of an individual are only those
respect to any act of self-dealing, the period beginning with individuals described in item 5.
the date on which the act of self-dealing occurs and ending
on the earliest of: Payment of benefits. For purposes of section 4951, a
payment out of assets or income of a trust described in
1. The date of mailing of a notice of deficiency under section 501(c)(21) for the purposes described in sections
section 6212, with respect to the tax imposed by section 501(c)(21)(A)(i)(I) and 501(c)(21)(A)(i)(IV) is not considered
4951(a)(1), an act of self-dealing.
2. The date on which the tax imposed by section 4951(a)
(1) is assessed, or Taxable Expenditures (Section 4952)
3. The date on which correction of the act of self-dealing
is completed. Taxable expenditure. For purposes of section 4952, the
term “taxable expenditure” means any amount paid or
Amount involved. The term “amount involved” means, for incurred by a trust described in section 501(c)(21) other than
any act of self-dealing, the greater of the amount of money for a purpose specified in that section.
and the fair market value (FMV) of the other property given or Correction. The terms “correction” and “correct” mean, with
the amount of money and the FMV of the other property respect to any taxable expenditure, placing the trust in a
received. However, in the case of services described in financial position not worse than that in which it would have
section 4951(d)(2)(C), the amount involved is only the been if the taxable expenditure had not been made:
excess compensation. For purposes of the preceding
sentence, the FMV: 1. By recovering all or part of the expenditure to the
extent recovery is possible, and
1. For the initial taxes imposed by section 4951(a), is
determined as of the date on which the act of self-dealing 2. When full recovery is not possible, by contributions by
occurs; and the person or persons whose liabilities for black lung benefit
claims (as defined in section 192(e)) are to be paid out of the
2. For additional taxes imposed by section 4951(b), is the trust.
highest FMV during the taxable period.
Taxable period. The term “taxable period” means, with
Correction. The terms “correction” and “correct” mean, for respect to any taxable expenditure, the period beginning with
any act of self-dealing, undoing the transaction to the extent the date on which the taxable expenditure occurs and ending
possible, but in any case, placing the trust in a financial on the earlier of:
position not worse than that in which it would be if the
disqualified person were dealing under the highest fiduciary 1. The date of mailing a notice of deficiency under
standards. section 6212 with respect to the tax imposed by section
4952(a)(1), or
Disqualified person. The term “disqualified person” means, 2. The date on which the tax imposed by section 4952(a)
for a trust described in section 501(c)(21), a person who is: (1) is assessed.
1. A contributor to the trust;
2. A trustee of the trust; Specific Instructions
3. An owner of more than 10% of: Line 22. A “conformed” copy is one that agrees with the
a. The total combined voting power of a corporation, original document, and all amendments to it. If the copies are
not signed, they must be accompanied by a written
b. The profits interest of a partnership, or declaration signed by an officer authorized to sign for the
c. The beneficial interest of a trust or unincorporated organization certifying that they are complete and accurate
enterprise, which is a contributor to the trust; copies of the original documents.
4. An officer, director, or employee of a person who is a Chemically or photographically reproduced copies of
contributor to the trust; articles of incorporation showing the certification of an
5. The spouse, ancestor, lineal descendant, or spouse of appropriate state official need not be accompanied by such a
a lineal descendant of an individual described in 1, 2, 3, or 4; declaration. See Rev. Proc. 68-14, 1968-1 C.B. 768, for
6. A corporation of which persons described in 1, 2, 3, 4, additional information.
or 5 own more than 35% of the total combined voting power; Line 23. If you answered “Yes,” to 23a(1), (2), (3), (4), or (5)
7. A partnership in which persons described in 1, 2, 3, 4, and “No,” to 23b, notify each self-dealer and trustee who may
or 5 own more than 35% of the profits interest; or be liable for initial taxes under section 4951 of the
requirement to file a return for each year (or part of a year)
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