Except as provided in paragraph (2), the term “correct” has the same meaning as when used in the section which imposes the second tier tax.
(2) Special rules
The term “correct” means—
(A)in the case of the second tier tax imposed by section
4942(b), reducing the amount of the undistributed income to zero,
(B)in the case of the second tier tax imposed by section
4943(b), reducing the amount of the excess business holdings to zero, and
(C)in the case of the second tier tax imposed by section
4944, removing the investment from jeopardy.
(e) Correction period
For purposes of this subchapter—
(1) In general
The term “correction period” means, with respect to any taxable event, the period beginning on the date on which such event occurs and ending 90 days after the date of mailing under section 6212 of a notice of deficiency with respect to the second tier tax imposed on such taxable event, extended by—
(A)any period in which a deficiency cannot be assessed under section
6213(a) (determined without regard to the last sentence of section
(B)any other period which the Secretary determines is reasonable and necessary to bring about correction of the taxable event.
(2) Special rules for when taxable event occurs
For purposes of paragraph (1), the taxable event shall be treated as occurring—
(A)in the case of section
4942, on the first day of the taxable year for which there was a failure to distribute income,
(B)in the case of section
4943, on the first day on which there are excess business holdings,
(C)in the case of section
4971, on the last day of the plan year in which there is an accumulated funding deficiency, and
(D)in any other case, the date on which such event occurred.
2006—Subsecs. (a), (c). Pub. L. 109–280, which directed the insertion of “4966, 4967,” after “4958,” in subsecs. (a) and (c) ofsection
4963, without specifying the act to be amended, was executed by making the insertion in subsecs. (a) and (c) of this section, which is section 4963 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
Pub. L. 109–280, title XII, § 1231(c),Aug. 17, 2006, 120 Stat. 1098, provided that: “The amendments made by this section [enacting subchapter G of this chapter and amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 17, 2006].”
Effective Date of 1996 Amendment
Amendment by Pub. L. 104–168applicable to excess benefit transactions occurring on or after Sept. 14, 1995, and not applicable to any benefit arising from a transaction pursuant to any written contract which was binding on Sept. 13, 1995, and at all times thereafter before such transaction occurred, see section 1311(d)(1), (2) ofPub. L. 104–168, set out as a note under section
4955 of this title.
Effective Date of 1987 Amendment
Amendment by Pub. L. 100–203applicable to taxable years beginning after Dec. 22, 1987, see section 10712(d) ofPub. L. 100–203, set out as an Effective Date note under section
4955 of this title.
For effective date of section with respect to any first tier tax and to any second tier tax, see section 2(d) ofPub. L. 96–596, set out as a note under section
4961 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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