Title 26 — Internal Revenue CodeRelease 119-73

§4953 Tax on excess contributions to black lung benefit trusts

Title 26 › Subtitle Subtitle D— - Miscellaneous Excise Taxes › Chapter CHAPTER 42— - PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS › Subchapter Subchapter B— - Black Lung Benefit Trusts › § 4953

Last updated Apr 6, 2026|Official source

Summary

A 5 percent tax applies each tax year to any excess contributions a person makes to a trust that qualifies under 501(c)(21). The person who makes the extra contribution must pay that tax. An "excess contribution" is the amount you put into the trust that is more than the deduction you can take under section 192 for that year, plus any leftover excess from the prior year after reducing it by any unused deduction room and by any distributions that returned prior-year excesses. Distributions up to the excess amount are not treated as self-dealing (section 4951), taxable expenditures (section 4952), or actions against the trust’s tax-exempt purpose (section 501(a)).

Full Legal Text

Title 26, §4953

Internal Revenue Code — Source: USLM XML via OLRC

(a)There is hereby imposed for each taxable year a tax in an amount equal to 5 percent of the amount of the excess contributions made by a person to or under a trust or trusts described in section 501(c)(21). The tax imposed by this subsection shall be paid by the person making the excess contribution.

(b)For purposes of this section, the term “excess contribution” means the sum of—

(1)the amount by which the amount contributed for the taxable year to a trust or trusts described in section 501(c)(21) exceeds the amount of the deduction allowable to such person for such contributions for the taxable year under section 192, and

(2)the amount determined under this subsection for the preceding taxable year, reduced by the sum of—

(A)the excess of the maximum amount allowable as a deduction under section 192 for the taxable year over the amount contributed to the trust or trusts for the taxable year, and

(B)amounts distributed from the trust to the contributor which were excess contributions for the preceding taxable year.

(c)Amounts distributed during the taxable year from a trust described in section 501(c)(21) to the contributor thereof the sum of which does not exceed the amount of the excess contribution made by the contributor shall not be treated as—

(1)an act of self-dealing (within the meaning of section 4951),

(2)a taxable expenditure (within the meaning of section 4952), or

(3)an act contrary to the purposes for which the trust is exempt from taxation under section 501(a).

Reference

Citations & Metadata

Citation

26 U.S.C. § 4953

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73