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Life Ins. Co. v. Commissioner, 106 T.C. 274, 299 (1996); see
also Garcia v. United States, 469 U.S. 70, 76 n.3 (1984). This
text is as follows:
SEC. 4975. TAX ON PROHIBITED TRANSACTIONS.
(a) Initial Taxes on Disqualified Person.--
There is hereby imposed a tax on each prohibited
transaction. The rate of tax shall be equal to 5
percent of the amount involved with respect to the
prohibited transaction for each year (or part
thereof) in the taxable period. The tax imposed by
this subsection shall be paid by any disqualified
person who participates in the prohibited transaction
(other than a fiduciary acting only as such).
(b) Additional Taxes on Disqualified Person.--
In any case in which an initial tax is imposed by
subsection (a) on a prohibited transaction and the
transaction is not corrected within the taxable
period, there is hereby imposed a tax equal to 100
percent of the amount involved. The tax imposed by
this subsection shall be paid by any disqualified
person who participated in the prohibited transaction
(other than a fiduciary acting only as such).
(c) Prohibited Transaction.--
(1) General rule.--For purposes of
this section, the term "prohibited
transaction" means any direct or indirect--
(A) sale or exchange * * *
of any property between a plan
and a disqualified person;
* * * * * * *
(e) Definitions.--
(1) Plan.--For purposes of this
section, the term "plan" means a trust
described in section 401(a) which forms a
part of a plan, or a plan described in
section 403(a), which trust or plan is
exempt from tax under section 501(a), * * *
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