Internal Revenue Code:Sec. 4946. Definitions and special rules
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 42 - PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT
ORGANIZATIONS
Subchapter A - Private Foundations
Statute
Sec. 4946. Definitions and special rules
(a) Disqualified person
(1) In general
For purposes of this subchapter, the term ''disqualified
person'' means, with respect to a private foundation, a person
who is -
(A) a substantial contributor to the foundation,
(B) a foundation manager (within the meaning of subsection
(b)(1)),
(C) an owner of more than 20 percent of -
(i) the total combined voting power of a corporation,
(ii) the profits interest of a partnership, or
(iii) the beneficial interest of a trust or unincorporated
enterprise,
which is a substantial contributor to the foundation,
(D) a member of the family (as defined in subsection (d)) of
any individual described in subparagraph (A), (B), or (C),
(E) a corporation of which persons described in subparagraph
(A), (B), (C), or (D) own more than 35 percent of the total
combined voting power,
(F) a partnership in which persons described in subparagraph
(A), (B), (C), or (D) own more than 35 percent of the profits
interest,
(G) a trust or estate in which persons described in
subparagraph (A), (B), (C), or (D) hold more than 35 percent of
the beneficial interest,
(H) only for purposes of section 4943, a private foundation -
(i) which is effectively controlled (directly or
indirectly) by the same person or persons who control the
private foundation in question, or
(ii) substantially all of the contributions to which were
made (directly or indirectly) by the same person or persons
described in subparagraph (A), (B), or (C), or members of
their families (within the meaning of subsection (d)), who
made (directly or indirectly) substantially all of the
contributions to the private foundation in question, and
(I) only for purposes of section 4941, a government official
(as defined in subsection (c)).
(2) Substantial contributors
For purposes of paragraph (1), the term ''substantial
contributor'' means a person who is described in section
507(d)(2).
(3) Stockholdings
For purposes of paragraphs (1)(C)(i) and (1)(E), there shall be
taken into account indirect stockholdings which would be taken
into account under section 267(c), except that, for purposes of
this paragraph, section 267(c)(4) shall be treated as providing
that the members of the family of an individual are the members
within the meaning of subsection (d).
(4) Partnerships; trusts
For purposes of paragraphs (1)(C)(ii) and (iii), (1)(F), and
(1)(G), the ownership of profits or beneficial interests shall be
determined in accordance with the rules for constructive
ownership of stock provided in section 267(c) (other than
paragraph (3) thereof), except that section 267(c)(4) shall be
treated as providing that the members of the family of an
individual are the members within the meaning of subsection (d).
(b) Foundation manager
For purposes of this subchapter, the term ''foundation manager''
means, with respect to any private foundation -
(1) an officer, director, or trustee of a foundation (or an
individual having powers or responsibilities similar to those of
officers, directors, or trustees of the foundation), and
(2) with respect to any act (or failure to act), the employees
of the foundation having authority or responsibility with respect
to such act (or failure to act).
(c) Government official
For purposes of subsection (a)(1)(I) and section 4941, the term
''government official'' means, with respect to an act of
self-dealing described in section 4941, an individual who, at the
time of such act, holds any of the following offices or positions
(other than as a ''special Government employee'', as defined in
section 202(a) of title 18, United States Code):
(1) an elective public office in the executive or legislative
branch of the Government of the United States,
(2) an office in the executive or judicial branch of the
Government of the United States, appointment to which was made by
the President,
(3) a position in the executive, legislative, or judicial
branch of the Government of the United States -
(A) which is listed in schedule C of rule VI of the Civil
Service Rules, or
(B) the compensation for which is equal to or greater than
the lowest rate of basic pay for the Senior Executive Service
under section 5382 of title 5, United States Code,
(4) a position under the House of Representatives or the Senate
of the United States held by an individual receiving gross
compensation at an annual rate of $15,000 or more,
(5) an elective or appointive public office in the executive,
legislative, or judicial branch of the government of a State,
possession of the United States, or political subdivision or
other area of any of the foregoing, or of the District of
Columbia, held by an individual receiving gross compensation at
an annual rate of $20,000 or more,
(6) a position as personal or executive assistant or secretary
to any of the foregoing, or
(7) a member of the Internal Revenue Service Oversight Board.
(d) Members of family
For purposes of subsection (a)(1), the family of any individual
shall include only his spouse, ancestors, children, grandchildren,
great grandchildren, and the spouses of children, grandchildren,
and great grandchildren.
Sources
(Added Pub. L. 91-172, title I, Sec. 101(b), Dec. 30, 1969, 83
Stat. 515; amended Pub. L. 95-227, Sec. 4(c)(2)(B), Feb. 10, 1978,
92 Stat. 22; Pub. L. 98-369, div. A, title III, Sec. 306(a), July
18, 1984, 98 Stat. 784; Pub. L. 99-514, title XVI, Sec. 1606(a),
Oct. 22, 1986, 100 Stat. 2771; Pub. L. 105-206, title I, Sec.
1101(c)(1), July 22, 1998, 112 Stat. 696; Pub. L. 106-554, Sec.
1(a)(7) (title III, Sec. 319(16)), Dec. 21, 2000, 114 Stat. 2763,
2763A-647.)
Miscellaneous
AMENDMENTS
2000 - Subsec. (c)(3)(B). Pub. L. 106-554 substituted ''the
lowest rate of basic pay for the Senior Executive Service under
section 5382'' for ''the lowest rate of compensation prescribed for
GS-16 of the General Schedule under section 5332''.
1998 - Subsec. (c)(7). Pub. L. 105-206 added par. (7).
1986 - Subsec. (c)(5). Pub. L. 99-514 substituted ''$20,000'' for
''$15,000''.
1984 - Subsec. (d). Pub. L. 98-369 amended subsec. (d) generally,
substituting references to children, grandchildren, and great
grandchildren for references to lineal descendants in two places.
1978 - Subsecs. (a)(1), (b). Pub. L. 95-227 substituted
''subchapter'' for ''chapter''.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1606(b) of Pub. L. 99-514 provided that: ''The amendment
made by this section (amending this section) shall apply to
compensation received after December 31, 1985.''
EFFECTIVE DATE OF 1984 AMENDMENT
Section 306(c) of Pub. L. 98-369 provided that: ''The amendments
made by this subsection (probably should be ''section'', amending
this section and section 6104 of this title) shall take effect on
January 1, 1985.''
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-227 applicable with respect to
contributions, acts, and expenditures made after Dec. 31, 1977, in
and for taxable years beginning after such date, see section 4(f)
of Pub. L. 95-227, set out as an Effective Date note under section
192 of this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 507, 509, 4940, 4941,
4942, 4943, 4945, 4948, 4958, 6033, 7454 of this title.
