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(3) 35-percent controlled entity.--
(A) In general.--The term “35-
percent controlled entity” means--
(i) a corporation in
which persons described
in subparagraph (A) or
(B) of paragraph (1) own
more than 35 percent of
the total combined voting
power,
(ii) a partnership
in which such persons own
more than 35 percent of
the profits interest, and
(iii) a trust or
estate in which such
persons own more than 35
percent of the beneficial
interest.
(B) Constructive ownership
rules.--Rules similar to the rules
of paragraphs (3) and (4) of
section 4946(a) shall apply for
purposes of this paragraph.
(4) Family members.--The members of an
individual’s family shall be determined under
section 4946(d); except that such members
also shall include the brothers and sisters
(whether by the whole or half blood) of the
individual and their spouses.
(5) Taxable period.--The term “taxable
period” means, with respect to any excess
benefit transaction, the period beginning
with the date on which the transaction occurs
and ending on the earliest of--
(A) the date of mailing a
notice of deficiency under section
6212 with respect to the tax
imposed by subsection (a)(1), or
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