§4967 — Title 26 Internal Revenue Code | U.S. Code

Summary

Imposes taxes when advice or agreement causes a donor-advised fund distribution that gives a more-than-incidental benefit to certain covered people. Anyone who advises the distribution or who gets the benefit pays a tax equal to 125% of the benefit. A fund manager who agrees to the distribution, knowing it will give that benefit, pays 10% of the benefit, capped at $10,000 per distribution. Multiple people can be held fully responsible. No tax applies here if a tax was already charged under section 4958. Covered people: those listed in section 4958(f)(7) for donor-advised funds.

Title 26, §4967

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)There is hereby imposed on the advice of any person described in subsection (d) to have a sponsoring organization make a distribution from a donor advised fund which results in such person or any other person described in subsection (d) receiving, directly or indirectly, a more than incidental benefit as a result of such distribution, a tax equal to 125 percent of such benefit. The tax imposed by this paragraph shall be paid by any person described in subsection (d) who advises as to the distribution or who receives such a benefit as a result of the distribution.

(2)There is hereby imposed on the agreement of any fund manager to the making of a distribution, knowing that such distribution would confer a benefit described in paragraph (1), a tax equal to 10 percent of the amount of such benefit. The tax imposed by this paragraph shall be paid by any fund manager who agreed to the making of the distribution.

(b)No tax shall be imposed under this section with respect to any distribution if a tax has been imposed with respect to such distribution under section 4958.

(c)For purposes of subsection (a)—

(1)If more than one person is liable under paragraph (1) or (2) of subsection (a) with respect to a distribution described in subsection (a), all such persons shall be jointly and severally liable under such paragraph with respect to such distribution.

(2)With respect to any one distribution described in subsection (a), the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000.

(d)A person is described in this subsection if such person is described in section 4958(f)(7) with respect to a donor advised fund.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to taxable years beginning after Aug. 17, 2006, see section 1231(c) of Pub. L. 109–280, set out as an

Effective Date

of 2006 Amendment note under section 4963 of this title.

§4967 Taxes on prohibited benefits

Summary

Title 26, §4967

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata