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Treasury Regulations · 26 CFR

§ 53.4965-4. Definition of tax-exempt party to a prohibited tax shelter transaction.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 4965

Cite as 26 CFR § 53.4965-4

At a glance

Read from the text and its source citation. Not part of the regulation.

Status
In the current eCFR
Issued
July 6, 2010 by T.D. 9492
Issued under
26 U.S.C. § 4965
Length
277 words · about 1 min to read
Cross-references
cites 1 Code section and 1 regulation; cited by 4
(a) In general. For purposes of sections 4965 and 6033(a)(2), a tax-exempt entity is a party to a prohibited tax shelter transaction if the entity—
(1) Facilitates a prohibited tax shelter transaction by reason of its tax-exempt, tax indifferent or tax-favored status; or
(2) Is identified in published guidance, by type, class or role, as a party to a prohibited tax shelter transaction.
(b) Published guidance may identify which tax-exempt entities, by type, class or role, will not be treated as a party to a prohibited tax shelter transaction.
(c) Example. The following example illustrates the principle of paragraph (a)(1) of this section:
Example.

A tax-exempt entity enters into a transaction (Transaction A) with an S corporation. Transaction A is the same as or substantially similar to the transaction identified by the Secretary as a listed transaction in Notice 2004-30 (2004-1 CB 828). The tax-exempt entity's role in Transaction A is similar to the role of the tax-exempt party, as described in Notice 2004-30. Under the terms of the transaction, as described in Notice 2004-30, the tax-exempt entity receives the S corporation stock and purports to aid the S corporation and its shareholders in avoiding taxable income. The tax-exempt entity facilitates Transaction A by reason of its tax-exempt, tax indifferent or tax-favored status. Accordingly, the tax-exempt entity is a party to Transaction A for purposes of sections 4965 and 6033(a)(2). See § 601.601(d)(2)(ii)(b) of this chapter.

(d) Effective/applicability dates. See § 53.4965-9 for the discussion of the relevant effective and applicability dates.

[T.D. 9492, 75 FR 38702, July 6, 2010]

Other regulations under § 4965

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Regulations it cites

Cited by 4 other regulations

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

  1. Issued by T.D. 9492 (75 FR 38702)

Where it sits in 26 CFR

  1. Subchapter D Miscellaneous excise taxes
  2. Part 53 Foundation and similar excise taxes
  3. Subpart K Second Tier Excise Taxes

Nearby sections