Skip to content

General education, not advice for your situation.

Carry Forward Learning Start here Intern0 XP

Treasury Regulations · 26 CFR

§ 54.4975-1. General rules relating to excise tax on prohibited transactions.

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. § 4975

Cite as 26 CFR § 54.4975-1

At a glance

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

Status
In the current eCFR
Issued
May 2, 1986 by T.D. 8084
Issued under
26 U.S.C. § 4975
Length
278 words · about 1 min to read
Defines
1 term
Cross-references
cites 2 Code sections and 0 regulations; cited by 0
(a) Scope. This section provides general rules for the imposition of the excise taxes on prohibited transactions.
(b) Initial tax. Section 4975(a) imposes an initial tax on each prohibited transaction. The initial tax is 5 percent of the amount involved with respect to the prohibited transaction for each year (or part thereof) in the taxable period.
(c) Additional tax. Section 4975(b) imposes an excise tax in any case in which an initial tax is imposed under section 4975(a) on a prohibited transaction and the prohibited transaction is not corrected within the taxable period (as defined in paragraph (d) of this section). The additional tax is 100 percent of the amount involved with respect to the prohibited transaction.
(d) Taxable period—
(1) In general. For purposes of any prohibited transaction, the term “taxable period” means the period beginning with the date on which the prohibited transaction occurs and ending on the earliest of:
(i) The date of mailing of a notice of deficiency under section 6212 with respect to the tax imposed by section 4975(a);
(ii) The date on which correction of the prohibited transaction is completed; or
(iii) The date on which the tax imposed by section 4975(a) is assessed.
(2) Special rule. Where a notice of deficiency referred to in paragraph (d)(1)(i) of this section is not mailed because a waiver of the restrictions on assessment and collection of a deficiency has been accepted or because the deficiency is paid, the date of filing of the waiver or the date of such payment, respectively, shall be treated as the end of the taxable period.

[T.D. 8084, 51 FR 16305, May 2, 1986]

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

Other regulations under § 4975

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

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. 8084 (51 FR 16305)

Where it sits in 26 CFR

  1. Subchapter D Miscellaneous excise taxes
  2. Part 54 Pension excise taxes

Nearby sections