§ 4979A(a)

tax imposed on allocation or ownership

UNDECIDED

0 of 2 settled

  1. 1

    § 4979A(a)

    ANY OF

    If—

    “there is a prohibited allocation of qualified securities by any employee stock ownership plan or eligible worker-owned cooperative,” § 4979A(a)(1)
    “there is an allocation described in section 664(g)(5)(A),” § 4979A(a)(2) needs Step 2 Plan treated as distributing UNDECIDED
    “there is any allocation of employer securities which violates the provisions of section 409(p), or a nonallocation year described in subsection (e)(2)(C) with respect to an employee stock ownership plan, or” § 4979A(a)(3)
    “any synthetic equity is owned by a disqualified person in any nonallocation year,” § 4979A(a)(4)

    there is hereby imposed a tax on such allocation or ownership equal to 50 percent of the amount involved.

  2. 2

    § 664(g)(5)(A)

    Plan treated as distributing

    ANY OF

    If any portion of the assets of the plan attributable to securities acquired by the plan in a qualified gratuitous transfer are allocated to the account of—

    “any person who is related to the decedent (within the meaning of section 267(b)) or a member of the decedent’s family (within the meaning of section 2032A(e)(2)), or” § 664(g)(5)(A)(i)
    “any person who, at the time of such allocation or at any time during the 1-year period ending on the date of the acquisition of qualified employer securities by the plan, is a 5-percent shareholder of the employer maintaining the plan,” § 664(g)(5)(A)(ii)

    the plan shall be treated as having distributed (at the time of such allocation) to such person or shareholder the amount so allocated.