Michael T. Caracci and Cindy W. Caracci, et al. - Page 71




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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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