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benefit personally and that he did not take collection action
when payment on the loans was overdue.
We sustain respondent’s determination under section 4975(a)
and turn to his determination under section 4975(b). Petitioner
sets forth in his brief no specific objection to the latter
determination. Respondent asserts as to this matter that
petitioner has never corrected any of the three loans and that
plan beneficiaries risk losing plan benefits as a result of those
loans. Respondent concludes that petitioner also is liable for
the second-tier excise tax. We agree.
Section 141.4975-13, Temporary Excise Tax Regs., 41 Fed.
Reg. 32890 (Aug. 5, 1976) and 51 Fed. Reg. 16305 (May 2, 1986),
provides that, absent permanent regulations for section
4975(f)(4) and (5), section 53.4941(e)-1, Foundation Excise Tax
Regs., shall be relied upon to interpret terms contained in
section 4975(f). Section 53.4941(e)-1(c)(4)(i), Foundation
Excise Tax Regs., provides:
In the case of the use by a disqualified person of
property owned by a private foundation, undoing the
transaction includes, but is not limited to,
terminating the use of such property. In addition to
termination, the disqualified person must pay the
foundation–
(a) The excess (if any) of the fair market
value of the use of the property over the
amount paid by the disqualified person for
such use until such termination, and
(b) The excess (if any) of the amount which
would have been paid by the disqualified
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