# Pub. L. 96-596: changes to the Internal Revenue Code 1980-12-24, 94 Stat. 3475. Source: . ## Legislative history - Bill: [H.R. 5391](https://www.congress.gov/bill/96th-congress/house-bill/5391) ## § 4071: Imposition of tax - § 4071(a): Pub. L. 96–596, § 4(a)(1)(A), substituted “9.75 cents” for “10 cents”. - § 4071(a): Pub. L. 96–596, § 4(a)(1)(B), substituted “4.875 cents” for “5 cents”. - § 4071(d): Pub. L. 96–596, § 4(a)(1)(C), substituted “4.875 cents” for “5 cents”. ## § 4941: Taxes on self-dealing - § 4941(b)(1): Pub. L. 96–596, § 2(a)(1)(A), substituted “taxable period” for “correction period”. - § 4941(e)(1)(B), § 4941(e)(1)(C): Pub. L. 96–596, § 2(a)(2)(A), added subpar. (B) and redesignated former subpar. (B) as (C). - § 4941(e)(2)(B): Pub. L. 96–596, § 2(a)(1)(B), substituted “taxable period” for “correction period”. - § 4941(e): Pub. L. 96–596, § 2(a)(3)(A), struck out par. (4) which defined correction period, with respect to any act of self-dealing, as the period beginning with the date on which the act of self-dealing occurs and ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (b)(1) of this section under section 6212 of this title, 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 is reasonable and necessary to bring about correction of the act of self-dealing. ## § 4942: Taxes on failure to distribute income - § 4942(b): Pub. L. 96–596, § 2(a)(1)(C), substituted “taxable period” for “correction period”. - § 4942(g)(2)(C)(ii): Pub. L. 96–596, § 2(a)(4)(A), substituted “the correction period (as defined in section 4962(e))” for “the initial correction period provided in subsection (j)(2)”. - § 4942(j)(1): Pub. L. 96–596, § 2(a)(2)(B), substituted provision ending the taxable period on the earlier of the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (a) of this section under section 6212 of this title or the date on which the tax imposed by subsec. (a) of this section is assessed for provision ending the taxable period on the date of mailing the notice of deficiency with respect to a tax imposed by subsec. (a) of this section under section 6212 of this title. - § 4942(j)(2): Pub. L. 96–596, § 2(a)(3)(B)(i), (iii), redesignated par. (4) as (2) and struck out former par. (2), which defined correction period, with respect to any private foundation for any taxable year, as the period beginning with the first day of the taxable year and ending 90 days after the date of mailing a notice of deficiency with respect to the tax imposed by subsec. (b) of this section under section 6212 of this title, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to permit a distribution of undistributed income. - § 4942(j)(3)(B)(i): Pub. L. 96–596, § 2(a)(3)(B)(ii), substituted “paragraph (4)” for “paragraph (5)”. - § 4942(j)(4), § 4942(j)(5), § 4942(j): Pub. L. 96–596, § 2(a)(3)(B)(iii), (iv), redesignated pars. (5) and (6) as (4) and (5), respectively. ## § 4943: Taxes on excess business holdings - § 4943(b): Pub. L. 96–596, § 2(a)(1)(D), substituted “taxable period” for “correction period”. - § 4943(d)(2): Pub. L. 96–596, § 2(a)(2)(C), substituted provision ending the taxable period on the earlier of the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (a) of this section under section 6212 of this title in respect to such holdings or the date on which the tax imposed by subsec. (a) of this section in respect to such holdings is assessed for provision ending the taxable period on the date of mailing the notice of deficiency with respect to a tax imposed by subsec. (a) of this section under section 6212 of this title in respect to such holdings. - § 4943(d)(3), § 4943(d)(4): Pub. L. 96–596, § 2(a)(3)(C), (4)(B), redesignated par. (4) as (3), and in subpar. (A) of par. (3) as so redesignated, substituted “section 4942(j)(4)” for “section 4942(j)(5)”, and struck out par. (3), which defined correction period, with respect to excess business holdings of a private foundation in a business enterprise, as the period ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (b) of this section under section 6212 of this title, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to permit orderly disposition of such excess business holdings. ## § 4944: Taxes on investments which jeopardize charitable purpose - § 4944(b)(1): Pub. L. 96–596, § 2(a)(1)(E), substituted “taxable period” for “correction period”. - § 4944(e)(1)(B), § 4944(e)(1)(C): Pub. L. 96–596, § 2(a)(2)(D), added subpar. (B) and redesignated former subpar. (B) as (C). - § 4944(e): Pub. L. 96–596, § 2(a)(3)(D), struck out par. (3), which defined correction period, with respect to any investment which jeopardizes the carrying out of exempt purposes, as the period beginning with the date on which such investment is entered into and ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (b)(1) of this section under section 6212 of this title, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to bring about removal from jeopardy. ## § 4945: Taxes on taxable expenditures - § 4945(b)(1): Pub. L. 96–596, § 2(a)(1)(F), substituted “taxable period” for “correction period”. - § 4945(i)(2): Pub. L. 96–596, § 2(a)(2)(E), 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 of a notice of deficiency with respect to the tax imposed by subsec. (b)(1) of this section under section 6212 of this title, 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 to be reasonable and necessary, except that such determination not be made with respect to any taxable expenditure within the meaning of pars. (1), (2), (3), or (4) of subsec. (d) of this section because of any action by an appropriate State officer. ## § 4951: Taxes on self-dealing - § 4951(b)(1): Pub. L. 96–596, § 2(a)(1)(G), substituted “taxable period” for “correction period”. - § 4951(e)(1)(B), § 4951(e)(1)(C): Pub. L. 96–596, § 2(a)(2)(F), added subpar. (B) and redesignated former subpar. (B) as (C). - § 4951(e)(2)(B): Pub. L. 96–596, § 2(a)(1)(H), substituted “taxable period” for “correction period”. - § 4951(e)(4), § 4951(e): Pub. L. 96–596, § 2(a)(3)(E), redesignated par. (5) as (4) and struck out former par. (4) which defined correction period, with respect to any act of self-dealing, as the period beginning with the date on which the act of self-dealing occurs and ending 90 days after the date of mailing of 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 a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to bring about correction of the act of self-dealing. ## § 4952: Taxes on taxable expenditures - § 4952(b)(1): Pub. L. 96–596, § 2(a)(1)(I), substituted “taxable period” for “correction period”. - § 4952(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. ## § 4961: Abatement of second tier taxes where there is correction - Enacted 26 U.S.C. § 4961. ## § 4963: Definitions - Enacted 26 U.S.C. § 4963. ## § 4971: Taxes on failure to meet minimum funding standards - § 4971(b): Pub. L. 96–596, § 2(a)(1)(J), substituted “taxable period” for “correction period”. - § 4971(c)(3): Pub. L. 96–596, § 2(a)(2)(H), substituted provision defining taxable period as the period beginning with the end of the plan year in which there is an accumulated funding deficiency and ending on the earlier of the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (a) of this section or the date on which the tax imposed by subsec. (a) of this section is assessed for provision defining correction period as the period beginning with the end of a plan year in which there is an accumulated funding deficiency and ending 90 days after the date of mailing of a notice of deficiency under section 6212 of this title with respect to the tax imposed by subsec. (b) of this section, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and by any other period which the Secretary determines reasonable and necessary to permit a reduction of the accumulated funding deficiency to zero. ## § 4975: Tax on prohibited transactions - § 4975(b): Pub. L. 96–596, § 2(a)(1)(K), substituted “taxable period” for “correction period”. - § 4975(f)(2)(B), § 4975(f)(2)(C): Pub. L. 96–596, § 2(a)(2)(I), added subpar. (B) and redesignated former subpar. (B) as (C). - § 4975(f)(4)(B): Pub. L. 96–596, § 2(a)(1)(L), substituted “taxable period” for “correction period”. - § 4975(f)(6): Pub. L. 96–596, § 2(a)(3)(F), struck out par. (6), which defined correction period, with respect to a prohibited transaction, as the period beginning on the date on which the prohibited transaction occurs and ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsec. (b) of this section under section 6212 of this title, extended by any period in which a deficiency cannot be assessed under section 6213(a) of this title and any other period which the Secretary determines is reasonable and necessary to bring about the correction of the prohibited transaction. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(e): Pub. L. 96–596 substituted “section 4962(e)” for “section 4941(e)(4), 4942(j)(2), 4943(d)(3), 4944(e)(3), 4945(i)(2), 4951(e)(4), 4952(e)(2), 4971(c)(3), or 4975(f)(6)”. ## § 6214: Determinations by Tax Court - § 6214(c): Pub. L. 96–596 inserted provision directing the Tax Court, in redetermining a deficiency of any second tier tax, to make a determination with respect to whether the taxable event has been corrected. ## § 6416: Certain taxes on sales and services - § 6416(b)(1): Pub. L. 96–596 designated existing provision in part as subpar. (A), and in subpar. (A) as so designated, inserted heading “In general” and substituted “Except as provided in subparagraph (B) or (C), if the price” for “If the price”, designated existing provision in part as subpar. (B), and in subpar. (B) as so designated, inserted heading “Further manufacture” and substituted “Subparagraph (A) shall not” for “The preceding sentence shall not”, and added subpar. (C). ## § 6503: Suspension of running of period of limitation - § 6503(g): Pub. L. 96–596, § 2(a)(4)(D), substituted “section 4962(e)” for “section 4941(e)(4), 4942(j)(2), 4943(d)(3), 4944(e)(3), 4945(i)(2), 4951(e)(4), 4952(e)(2), 4971(c)(3), or 4975(f)(6)”. - § 6503(i): Pub. L. 96–596, § 2(a)(4)(E), redesignated subsec. (j), relating to cross references, as (i). See Codification note set out above. - § 6503(j): Pub. L. 96–596, § 2(a)(4)(E), redesignated former subsec. (j), relating to cross references, as (i). See Codification note set out above. ## § 7422: Civil actions for refund - § 7422(g): Pub. L. 96–596 substituted in par. (1) provision authorizing, with respect to any taxable event, payment of the full amount of the first tier tax as constituting sufficient payment in order to maintain an action under this section with respect to the second tier tax and defining the terms “taxable event”, “first tier tax”, and “second tier tax” as having the respective meanings given to such terms by section 4962 of this title for provision authorizing, with respect to any act or failure to act giving rise to liability under sections 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4971, or 4975 of this title, payment of the full amount of tax imposed under specified subsections of those sections as constituting sufficient payment in order to maintain an action under this section with respect to such act or failure to act.