§1203 — Title 29 Labor | U.S. Code

Summary

The Treasury Secretary must tell the Labor Secretary and give the Labor Secretary a chance to comment before sending a notice of deficiency for the tax rules in section 4975 of Title 26, unless collecting the tax is in danger. The Treasury Secretary can waive the tax under section 4975(b) in proper cases. If the Labor Secretary or the Pension Benefit Guaranty Corporation (PBGC) asks in writing, Treasury must investigate whether the section 4975 tax should apply to the person named. The Treasury and Labor Secretaries must meet from time to time to coordinate the rules under section 4975 and the related subchapter I rules on prohibited transactions and exemptions. If Labor learns that a party-in-interest or disqualified person is breaking section 1106, Labor must send that information to Treasury.

Title 29, §1203

Labor — Source: USLM XML via OLRC

(a)Unless the Secretary of the Treasury finds that the collection of a tax is in jeopardy, in carrying out the provisions of section 4975 of title 26 (relating to tax on prohibited transactions) the Secretary of the Treasury shall, in accordance with the provisions of subsection (h) of such section, notify the Secretary of Labor before sending a notice of deficiency with respect to the tax imposed by subsection (a) or (b) of such section, and, in accordance with the provisions of subsection (h) of such section, afford the Secretary an opportunity to comment on the imposition of the tax in any case. The Secretary of the Treasury shall have authority to waive the imposition of the tax imposed under section 4975(b) in appropriate cases. Upon receiving a written request from the Secretary of Labor or from the Pension Benefit Guaranty Corporation, the Secretary of the Treasury shall cause an investigation to be carried out with respect to whether the tax imposed by section 4975 of title 26 should be applied to any person referred to in the request.

(b)The Secretary of the Treasury and the Secretary of Labor shall consult with each other from time to time with respect to the provisions of section 4975 of title 26 (relating to tax on prohibited transactions) and with respect to the provisions of subchapter I of this chapter relating to prohibited transactions and exemptions therefrom in order to coordinate the rules applicable under such standards.

(c)Whenever the Secretary of Labor obtains information indicating that a party-in-interest or disqualified person is violating section 1106 of this title, he shall transmit such information to the Secretary of the Treasury.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1989—Subsecs. (a), (b). Pub. L. 101–239 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 7891(f) of Pub. L. 101–239, set out as a note under section 1002 of this title.

§1203 Procedures in Connection with Prohibited Transactions