Internal Revenue Code · 26 U.S.C.
§ 4952. Taxes on taxable expenditures
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 4952
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- February 10, 1978 by Pub. L. 95–227
- Last amended
- December 24, 1980 by Pub. L. 96–596
- Amendments
- 1 dated changes in the source credit
- Length
- 5 subsections · 552 words · about 2 min to read
- Defines
- 4 terms
- Cross-references
- cites 3; cited by 2 Code sections and 3 other regulations
- Regulations
- 1 issued under this section
There is hereby imposed on each taxable expenditure (as defined in subsection (d)) from the assets or income of a trust described in section 501(c)(21) a tax equal to 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.
There is hereby imposed on the agreement of any trustee of such a trust to the making of an expenditure, knowing that it is a taxable expenditure, a tax equal to 2½ 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 who agreed to the making of the expenditure.
In 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 taxable 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.
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 who refused to agree to part or all of the correction.
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.
For purposes of this section, the term “taxable expenditure” means any amount paid or incurred by a trust described in section 501(c)(21) other than for a purpose specified in such section.
The terms “correction” and “correct” mean, with respect to any taxable expenditure, recovering part or all of 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 lung benefit claims (as defined in section 192(e)) are to be paid out of the trust to the extent necessary to place the trust in a financial position not worse than that in which it would be if the taxable expenditure had not been made.
(Added Pub. L. 95–227, § 4(c)(1), Feb. 10, 1978, 92 Stat. 21; amended Pub. L. 96–596, § 2(a)(1)(I), (2)(G), Dec. 24, 1980, 94 Stat. 3469, 3471.)
Terms defined here
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Regulations under this section
Treasury regulations (26 CFR) issued under § 4952
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 501(c)(21) Exemption from tax on corporations, certain trusts, etc.
- § 192(e) Contributions to black lung benefit trust
- § 6212 Notice of deficiency
Cited by 2 Code sections
- § 4953(c)(2) Tax on excess contributions to black lung benefit trusts
- § 7454(b) Burden of proof in fraud, foundation manager, and transferee cases
Cited in 3 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle D Miscellaneous Excise Taxes
- Chapter 42 PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS
- Subchapter B Black Lung Benefit Trusts
Nearby sections
- § 4951 Taxes on self-dealing
- § 4952 Taxes on taxable expenditures
- § 4953 Tax on excess contributions to black lung benefit trusts
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1980—Subsec. (b)(1). Pub. L. 96–596, § 2(a)(1)(I), substituted “taxable period” for “correction period”.
Subsec. (e)(2). Pub. L. 96–596, § 2(a)(2)(G), substituted provision defining taxable period as the period beginning with the date on which the taxable expenditure occurs and ending on the earlier of the date of mailing a notice of deficiency with respect to the tax imposed by subsec. (a)(1) of this section under section 6212 of this title or the date on which the tax imposed by subsec. (a)(1) of this section is assessed for provision defining correction period as the period beginning with the date on which the taxable expenditure occurs and ending 90 days after the date of mailing a notice of deficiency under section 6212 of this title with respect to the tax imposed by subsec. (b)(1) of this section, extended by any period in which the deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines reasonable and necessary to bring about the correction of the taxable expenditure.
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
For effective date of amendment by Pub. L. 96–596 with respect to any first tier tax and to any second tier tax, see section 2(d) of Pub. L. 96–596, set out as an Effective Date note under section 4961 of this title.