I.R.C. § 4971(a) Initial Tax —
If at any time during any taxable year an employer maintains a plan to which section
412 applies, there is hereby imposed
for the taxable year a tax equal to—
I.R.C. § 4971(a)(1) —
in the case of a single-employer
plan, 10 percent of the aggregate unpaid minimum required contributions for all plan
years remaining unpaid as of the end of any plan year ending with or within the taxable
year,
I.R.C. § 4971(a)(2) —
in the case of a multiemployer plan,
5 percent of the accumulated funding deficiency determined under section 431 as of the end of any plan year ending with or within the taxable year, and
I.R.C. § 4971(a)(3) —
in the case of a CSEC plan, 10 percent of the CSEC accumulated funding deficiency
as of the end of the plan year ending with or within the taxable year.
I.R.C. § 4971(b) Additional Tax —
If—
I.R.C. § 4971(b)(1) —
a tax is imposed under subsection
(a)(1) on any unpaid minimum required contribution and such amount remains unpaid
as of the close of the taxable period,
I.R.C. § 4971(b)(2) —
a tax is imposed under subsection
(a)(2) on any accumulated funding deficiency and the accumulated funding deficiency
is not corrected within the taxable period, or
I.R.C. § 4971(b)(3) —
a tax is imposed under subsection (a)(3)
on any CSEC accumulated funding deficiency and the CSEC accumulated funding deficiency
is not corrected within the taxable period,
there is hereby imposed a tax equal
to 100 percent of the unpaid minimum required contribution, accumulated funding deficiency,
or CSEC accumulated funding deficiency, whichever is applicable, to the extent not
so paid or corrected.
I.R.C. § 4971(c) Definitions —
For purposes of this section—
I.R.C. § 4971(c)(1) Accumulated Funding Deficiency —
The term “accumulated funding deficiency"
has the meaning given to such term by section 431.
I.R.C. § 4971(c)(2) Correct —
The term “correct” means, with respect to an accumulated funding deficiency or CSEC
accumulated funding deficiency, the contribution, to or under the plan, of the amount
necessary to reduce such accumulated funding deficiency or CSEC accumulated funding
deficiency as of the end of a plan year in which such deficiency arose to zero.
I.R.C. § 4971(c)(3) Taxable Period —
The term “taxable period” means, with respect to an accumulated funding deficiency,
CSEC accumulated funding deficiency, or unpaid minimum required contribution, whichever
is applicable, the period beginning with the end of the plan year in which there
is an accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid
minimum required contribution, whichever is applicable, and ending on the earlier
of—
I.R.C. § 4971(c)(3)(A) —
the date of mailing of a notice of deficiency with respect to the tax imposed by
subsection (a), or
I.R.C. § 4971(c)(3)(B) —
the date on which the tax imposed by subsection (a) is assessed.
I.R.C. § 4971(c)(4) Unpaid Minimum Required Contribution
I.R.C. § 4971(c)(4)(A) In General —
The term “unpaid minimum required contribution” means, with respect to any plan year,
any minimum required contribution under section 430 for the plan year which is not paid on or before the due date (as determined under
section 430(j)(1))
for the plan year.
I.R.C. § 4971(c)(4)(B) Ordering Rule —
Any payment to or under a plan for any plan year shall be allocated first to unpaid
minimum required contributions for all preceding plan years on a first-in, first-out
basis and then to the minimum required contribution under section 430 for the plan year.
I.R.C. § 4971(c)(5) CSEC Accumulated Funding Deficiency —
The term “CSEC accumulated funding deficiency”
means the accumulated funding deficiency determined under section 433.
I.R.C. § 4971(d) Notification Of The Secretary Of Labor —
Before issuing a notice of deficiency with respect to the tax imposed by subsection
(a) or (b), the Secretary shall notify the Secretary of Labor and provide him a reasonable
opportunity
(but not more than 60 days)—
I.R.C. § 4971(d)(1) —
to require the employer responsible for contributing to or under the plan to eliminate
the accumulated funding deficiency, CSEC accumulated funding deficiency, or unpaid
minimum required contribution, whichever is applicable, or
I.R.C. § 4971(d)(2) —
to comment on the imposition of such tax.
I.R.C. § 4971(e) Liability For Tax
I.R.C. § 4971(e)(1) In General —
Except as provided in paragraph
(2), the tax imposed by subsection (a), (b), or (f) shall be paid by the employer
responsible for contributing to or under the plan the amount described in section
412(a)(2).
I.R.C. § 4971(e)(2) Joint And Several Liability Where Employer Member Of Controlled Group
I.R.C. § 4971(e)(2)(A) In General —
If an employer referred to in paragraph (1) is a member of a controlled group, each
member of such group shall be jointly and severally liable for the tax imposed by
subsection (a), (b),
(f), or (g).
I.R.C. § 4971(e)(2)(B) Controlled Group —
For purposes of subparagraph (A), the term “controlled group” means any group treated
as a single employer under subsection
(b), (c), (m), or (o) of section 414.
I.R.C. § 4971(f) Failure To Pay Liquidity Shortfall
I.R.C. § 4971(f)(1) In General —
In the case of a plan to which section 430(j)(4) or 433(f) applies, there is hereby imposed a tax of 10 percent of the excess (if any) of—
I.R.C. § 4971(f)(1)(A) —
the amount of the liquidity shortfall for any quarter, over
I.R.C. § 4971(f)(1)(B) —
the amount of such shortfall which is paid by the required installment under section
430(j) or 433(f), whichever is applicable, for such quarter (but only if such installment is paid
on or before the due date for such installment).
I.R.C. § 4971(f)(2) Additional Tax —
If the plan has a liquidity shortfall as of the close of any quarter and as of the
close of each of the following 4 quarters, there is hereby imposed a tax equal to
100 percent of the amount on which tax was imposed by paragraph (1) for such first
quarter.
I.R.C. § 4971(f)(3) Definitions And Special Rule
I.R.C. § 4971(f)(3)(A) Liquidity Shortfall; Quarter —
For purposes of this subsection, the terms “liquidity shortfall” and “quarter” have
the respective meanings given such terms by section 430(j) or 433(f), whichever is applicable.
I.R.C. § 4971(f)(3)(B) Special Rule —
If the tax imposed by paragraph (2) is paid with respect to any liquidity shortfall
for any quarter, no further tax shall be imposed by this subsection on such shortfall
for such quarter.
I.R.C. § 4971(f)(4) Waiver By Secretary —
If the taxpayer establishes to the satisfaction of the Secretary that—
I.R.C. § 4971(f)(4)(A) —
the liquidity shortfall described in paragraph (1) was due to reasonable cause and
not willful neglect, and
I.R.C. § 4971(f)(4)(B) —
reasonable steps have been taken to remedy such liquidity shortfall,
the Secretary may waive all or part
of the tax imposed by this subsection.
I.R.C. § 4971(g) Multiemployer Plans In Endangered Or Critical Status
I.R.C. § 4971(g)(1) In General —
Except as provided in this subsection—
I.R.C. § 4971(g)(1)(A) —
no tax shall be imposed under this
section for a taxable year with respect to a multiemployer plan if, for the plan
years ending with or within the taxable year, the plan is in critical status pursuant
to section 432, and
I.R.C. § 4971(g)(1)(B) —
any tax imposed under this subsection
for a taxable year with respect to a multiemployer plan if, for the plan years ending
with or within the taxable year, the plan is in endangered status pursuant to section
432 shall be in addition to any other tax imposed by this section.
I.R.C. § 4971(g)(2) Failure To Comply With Funding Improvement Or Rehabilitation Plan
I.R.C. § 4971(g)(2)(A) In General —
If any funding improvement plan or rehabilitation plan in effect under section 432 with respect to a multiemployer plan requires an employer to make a contribution
to the plan, there is hereby imposed a tax on each failure of the employer to make
the required contribution within the time required under such plan.
I.R.C. § 4971(g)(2)(B) Amount Of Tax —
The amount of the tax imposed by subparagraph (A) shall be equal to the amount of
the required contribution the employer failed to make in a timely manner.
I.R.C. § 4971(g)(2)(C) Liability For Tax —
The tax imposed by subparagraph
(A) shall be paid by the employer responsible for contributing to or under the rehabilitation
plan which fails to make the contribution.
I.R.C. § 4971(g)(3) Failure To Meet Requirements For Plans In Endangered Or Critical Status —
If—
I.R.C. § 4971(g)(3)(A) —
a plan which is in seriously endangered status fails to meet the applicable benchmarks
by the end of the funding improvement period, or
I.R.C. § 4971(g)(3)(B) —
a plan which is in critical status
either—
I.R.C. § 4971(g)(3)(B)(i) —
fails to meet the requirements of
section 432(e) by the end of the rehabilitation period, or
I.R.C. § 4971(g)(3)(B)(ii) —
has received a certification under
section 432(b)(3)(A)(ii) for 3 consecutive plan years that the plan is not making the scheduled progress
in meeting its requirements under the rehabilitation plan,
the plan shall be treated as having
an accumulated funding deficiency for purposes of this section for the last plan
year in such funding improvement, rehabilitation, or
3-consecutive year period (and each succeeding plan year until such
benchmarks or requirements are met) in an amount equal to the greater of the amount
of the contributions necessary to meet such benchmarks or requirements or the amount
of such accumulated funding deficiency without regard to this paragraph.
I.R.C. § 4971(g)(4) Failure To Adopt Rehabilitation Plan
I.R.C. § 4971(g)(4)(A) In General —
In the case of a multiemployer plan which is in critical status, there is hereby
imposed a tax on the failure of such plan to adopt a rehabilitation plan within the
time prescribed under section 432.
I.R.C. § 4971(g)(4)(B) Amount Of Tax —
The amount of the tax imposed under subparagraph (A) with respect to any plan sponsor
for any taxable year shall be the greater of—
I.R.C. § 4971(g)(4)(B)(i) —
the amount of tax imposed under subsection
(a) for the taxable year (determined without regard to this subsection), or
I.R.C. § 4971(g)(4)(B)(ii) —
the amount equal to $1,100 multiplied by the number of days during the taxable year
which are included in the period beginning on the day following the close of the 240-day
period described in section 432(e)(1)(A) and ending on the day on which the rehabilitation plan is adopted.
I.R.C. § 4971(g)(4)(C) Liability For Tax
I.R.C. § 4971(g)(4)(C)(i) In General —
The tax imposed by subparagraph
(A) shall be paid by each plan sponsor.
I.R.C. § 4971(g)(4)(C)(ii) Plan Sponsor —
For purposes of clause (i), the term “plan sponsor” has the meaning given such term
by section 432(j)(9).
I.R.C. § 4971(g)(5) Waiver —
In the case of a failure described in paragraph (2) or (3) which is due to reasonable
cause and not to willful neglect, the Secretary may waive part or all of the tax
imposed by this subsection. For purposes of this paragraph, reasonable cause includes
unanticipated and material market fluctuations, the loss of a significant contributing
employer, or other factors to the extent that the payment of tax under this subsection
with respect to the failure would be excessive or otherwise inequitable relative
to the failure involved.
I.R.C. § 4971(g)(6) Terms Used In Section 432 —
For purposes of this subsection, any term used in this subsection which is also used
in section 432 shall have the meaning given
such term by section 432.
I.R.C. § 4971(h) Failure Of A CSEC Plan Sponsor To Adopt Funding Restoration Plan
I.R.C. § 4971(h)(1) In General —
In the case of a CSEC plan that is in funding restoration status (within the meaning
of section 433(j)(5)(A)), there is hereby imposed a tax on the failure of such plan to adopt a funding restoration
plan within the time prescribed under section 433(j)(3).
I.R.C. § 4971(h)(2) Amount Of Tax —
The amount of the tax imposed under paragraph (1) with respect to any plan sponsor
for any taxable year shall be the amount equal to $100 multiplied by the number of
days during the taxable year which are included in the period beginning on the day
following the close of the 180-day period described in section 433(j)(3) and ending on the day on which the funding restoration plan is adopted.
I.R.C. § 4971(h)(3) Waiver By Secretary —
In the case of a failure described in paragraph (1) which the Secretary determines
is due to reasonable cause and not to willful neglect, the Secretary may waive a portion
or all of the tax imposed by such paragraph.
I.R.C. § 4971(h)(4) Liability For Tax —
The tax imposed by paragraph (1) shall be paid by the plan sponsor (within the meaning
of section 433(j)(5)(E)).
I.R.C. § 4971(i) Cross References —
For disallowance of deduction for taxes paid under this
section, see section 275.
For liability for tax in case of an employer party to
collective bargaining agreement, see section 413(b)(6).
For provisions concerning notification of Secretary of Labor of imposition of tax
under this section, waiver of the tax imposed by subsection (b), and other coordination
between Secretary of the Treasury and Secretary of Labor with respect to compliance
with this section, see section 3002(b) of title III of the Employee Retirement Income
Security Act of 1974.
(Added by Pub. L. 93-406, title II, 1013(b), Sept. 2, 1974, 88 Stat. 920, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-364, title II, 204, Sept. 26, 1980, 94 Stat. 1287; Pub. L. 96-596, 2(a)(1)(J), (2)(H), Dec. 24, 1980, 94 Stat. 3469, 3471; Pub. L. 100-203, title IX, 9304(c)(1), 9305(a), Dec. 22, 1987, 101 Stat. 1330-348, 1330-351; Dec. 8, 1994, Pub. L. 103-465, title VII, Sec. 751(a)(9)(B)(ii), (a)(9)(B)(i); Aug. 20, 1996, Pub. L. 104-188, title I, 1464, 110 Stat. 1755; Aug. 17, 2006, Pub. L. 109-280, title I, II, Sec.
114(e), 212(b), 120 Stat. 780; Pub. L. 110-458, title I, Sec. 101(d)(2), 102(b)(2), Dec. 23, 2008, 122 Stat. 5092; Pub. L. 113-97, title II, Sec. 202(c)(8),
(9), Apr. 7, 2014, 128 Stat. 1101; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(225)-(228) and 401(b)(44), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendments to Chapter
1988--Pub. L. 100-647, title I, 1011A(g)(1)(B), title III, 3011(c), Nov. 10, 1988, 102 Stat. 3479, 3625, redesignated item 4981A as 4980A and added item 4980B.
1987--Pub. L. 100-203, title X, 10413(b)(2), Dec. 22, 1987, 101 Stat. 1330-438, added item 4978A.
1986--Pub. L. 99-514, title XI, 1117(b)(2), 1121(a)(2), 1131(c)(2), 1132(b), 1133(b), title XVIII, 1854(a)(9)(C),
1899A(75), Oct. 22, 1986, 100 Stat. 2462, 2465, 2478, 2480, 2483, 2877, 2963, added item 4972, inserted “section"
in item 4973, substituted “Excise tax on certain accumulations in qualified retirement
plans” for “Tax on certain accumulations in individual retirement accounts” in item
4974, struck out “and allocations” after
“certain dispositions” in item 4978, and added items 4979, 4979A, 4980, and 4981A.
1984--Pub. L. 98-369, div. A, title IV, 491(d)(56), title V, 511(c)(2), 531(e)(2), 545(b), July 18, 1984,
98 Stat. 852, 862, 886, 896, substituted
“and certain individual retirement annuities” for “certain individual retirement annuities,
and certain retirement bonds” in item 4973 and added items 4976 to 4978.
1982--Pub. L. 97-248, title II, 237(c)(2), Sept. 3, 1982, 96 Stat. 511, struck out item 4972 “Tax on excess contributions for self-employed individuals”.
1974--Pub. L. 93-406, title II, 1013(b), 2001(f)(2), 2002(h)(3), Sept. 2, 1974, 88 Stat. 920, 957, 970, added chapter heading and analysis of sections 4971 to 4975.
AMENDMENTS
2018 -
Subsec. (b). Pub. L. 115-141, Div. U, Sec. 401(a)(225), amended subsec. (b) by substituting “minimum required
contribution, accumulated funding deficiency, or CSEC accumulated funding deficiency,
whichever is applicable” for “minimum required contribution,” and all that follows
through “whichever is applicable”.
Subsec. (c)(3). Pub. L. 115-141, Div. U, Sec. 401(a)(226), amended par. (3) by substituting “applicable, and” for
“applicable and”.
Subsec. (f). Pub. L. 115-141, Div. U, Sec. 401(a)(227), amended subsec. (f) by substituting “applicable, for”
for “applicable for”.
Subsec. (g)(4)(C)(ii). Pub. L. 115-141, Div. U, Sec. 401(a)(228), amended subpar. (4)(C)(ii)
by substituting “section 432(j)(9)” for “section 432(i)(9)”.
Subsec. (d). Pub. L. 115-141, Div. U, Sec. 401(b)(44), amended subsec. (d) by striking the last sentence, “In
the case of a multiemployer plan which is in reorganization under section 418, the
same notice and opportunity shall be provided to the Pension Benefit Guaranty Corporation.”
2014 - Subsec. (a)(1)-(3). Pub. L. 113-97, Sec. 202(c)(8)(A), amended subsec. (a) by striking “and” at the end of par.
(1), by substituting “, and” for the period at the end of par. (2), and by adding
par. (3).
Subsec. (b)(1)-(3). Pub. L. 113-97, Sec. 202(c)(8)(B)(i), amended subsec. (b) by striking “or” at the end of par.
(1), by substituting “or” for the period at the end of par. (2), and by adding par.
(3).
Subsec. (b). Pub. L. 113-97, Sec. 202(c)(8)(B)(ii), amended subsec. (b) by substituting “minimum required contribution, accumulated
funding deficiency, or CSEC accumulated funding deficiency”
for “minimum required contributions or accumulated funding deficiency”.
Subsec. (c)(2). Pub. L. 113-97, Sec. 202(c)(8)(C)(i), amended par. (2) by substituting “accumulated funding deficiency or CSEC accumulated
funding deficiency” for “accumulated funding deficiency” each place it appeared.
Subsec. (c)(3). Pub. L. 113-97, Sec. 202(c)(8)(C)(ii), amended par. (3) by substituting” accumulated funding deficiency, CSEC accumulated
funding deficiency, or unpaid minimum required contribution”
for “accumulated funding deficiency or unpaid minimum required contribution” each
place it appeared.
Subsec. (c)(5). Pub. L. 113-97, Sec. 202(c)(8)(C)(iii), amended subsec. (c) by adding par. (5).
Subsec. (d)(1). Pub. L. 113-97, Sec. 202(c)(8)(D), amended par. (1) by substituting “accumulated funding deficiency, CSEC accumulated
funding deficiency, or unpaid minimum required contributions”
for “accumulated funding deficiency or unpaid minimum required contribution”.
Subsec. (f)(1). Pub. L. 113-97, Sec. 202(c)(8)(E)(i), amended par. (1) by substituting “430(j)(4) or 433(f)”
for “430(j)(4)”.
Subsec. (f)(1)(B). Pub. L. 113-97, Sec. 202(c)(8)(E)(ii), amended subpar. (B) by substituting “430(j) or 433(f), whichever is applicable”
for “430(j)”.
Subsec. (f)(3)(A). Pub. L. 113-97, Sec. 202(c)(8)(E)(iii), amended subpar. (A) by substituting “430(j) or 433(f), whichever is applicable”
for “412(m)(5)”.
Subsec. (h)-(i). Pub. L. 113-97, Sec. 202(c)(9), redesignated subsec. (h) as subsec. (i) and added a new subsec. (h).
2008 - Subsec. (b)(1). Pub. L. 110-458, Sec. 101(d)(2)(F)(i), amended par. (1) by substituting “minimum required” for “required minimum”.
Subsec. (c)(3). Pub. L. 110-458, Sec. 101(d)(2)(F)(ii), amended par. (3) by inserting “or unpaid minimum required contribution, whichever
is applicable” after “accumulated funding deficiency”
each place it appeared.
Subsec. (d)(1). Pub. L. 110-458, Sec. 101(d)(2)(F)(ii), amended par. (1) by inserting “or unpaid minimum required contribution, whichever
is applicable” after “accumulated funding deficiency”.
Subsec. (e)(1). Pub. L. 110-458, Sec. 101(d)(2)(F)(iii), amended par. (1) by substituting “section 412(a)(2)” for “section 412(a)(1)(A)”.
Subsec. (g)(4)(B)(ii). Pub. L. 110-458, Sec. 102(b)(2)(I)(i), amended clause (ii) by substituting “day following the close of” for “first day
of”.
Subsec. (g)(4)(C)(ii). Pub. L. 110-458, Sec. 102(b)(2)(I)(ii), amended clause (ii). Before amendment, it read as follows:
“(ii) Plan Sponsor.— For purposes of clause (i), the term “plan sponsor” in the
case of a multiemployer plan means the association, committee, joint board of trustees,
or other similar group of representatives of the parties who establish or maintain
the plan.”
2006 - Subsec. (a). Pub. L. 109-280, Sec. 114(e)(1), amended subsec. (a). Before amendment, it read as follows:
“(a) Initial tax
“For each taxable year of an employer who maintains a plan to which section 412 applies,
there is hereby imposed a tax of 10 percent (5 percent in the case of a multiemployer
plan) on the amount of the accumulated funding deficiency under the plan, determined
as of the end of the plan year ending with or within such taxable year.”
Subsec. (b). Pub. L. 109-280, Sec. 114(e)(1), amended subsec. (b). Before amendment it read as follows:
“(b) Additional tax
“In any case in which an initial tax is imposed by subsection (a) on an accumulated
funding deficiency and such accumulated funding deficiency is not corrected within
the taxable period, there is hereby imposed a tax equal to 100 percent of such accumulated
funding deficiency to the extent not corrected.”
Subsec. (c)(1). Pub. L. 109-280, Sec. 114(e)(2)(A), amended par. (1) by substituting “section 431” for “the last two sentences of section
412(a)”.
Subsec. (c)(4). Pub. L. 109-280, Sec. 114(e)(2)(B), added par. (4).
Subsec. (e)(1). Pub. L. 109-280, Sec. 114(e)(3), amended par. (1) by substituting “section 412(a)91)(A)” for “section 412(b)(3)(A)”.
Subsec.
(e)(2). Pub. L. 109-280, Sec. 212(b)(2) (as corrected by Pub. L. 110-458, Sec. 102(b)(3)(A)), amended par. (2) by substituting “If an” for “in the case of a plan other than
a multiemployer plan, if the” and by substituting “(f), or (g)” for “or (f)”.
Subsec. (f)(1). Pub. L. 109-280, Sec. 114(e)(4), amended par. (1) by substuitng “section 430(j)(4)” for “section 412(m)(5)"
and by substituting “section 430(j)” for “section 412(m)”.
Subsec. (g)-(h). Pub. L. 109-280, Sec. 212(b)(1), redesignated subsec. (g) as subsec. (h) and added a new subsec. (g).
1996 - Subsec. (f)(4). Pub. L. 104-188, Sec. 1464(a), added par. (4).
1994 - Subsec. (f) and (g). Pub. L. 103-465, Sec. 751(a)(9)(B)(ii), redesignated (f) as (g), and inserted new subsection (f), effective generally for
plan years beginning after December 31, 1994.
Subsec. (e). Pub. L. 103-465, Sec. 751(a)(9)(B)(i), amended (e) by striking “(a) or (b)” each place it appeared and inserting
“(a), (b), or (f)”, effective generally for plan years beginning after December 31,
1994.
1987--Subsec. (a). Pub. L. 100-203, 9305(a)(2)(A), struck out at end “The tax imposed by this subsection shall be paid
by the employer responsible for contributing to or under the plan the amount described
in section 412(b)(3)(A).”
Pub. L. 100-203, 9304(c)(1), substituted “10 percent (5 percent in the case of a multiemployer plan)”
for “5 percent”.
Subsec. (b). Pub. L. 100-203, 9305(a)(2)(B), struck out at end “The tax imposed by this subsection shall be paid
by the employer described in subsection (a).”
Subsecs. (e), (f). Pub. L. 100-203, 9305(a)(1), added subsec. (e) and redesignated former subsec. (e) as (f).
1980--Subsec. (b). Pub. L. 96-596, 2(a)(1)(J), substituted
“taxable period” for “correction period”.
Subsec. (c)(1). Pub. L. 96-364, 204(1), substituted “last two sentences"
for “last sentence”.
Subsec. (c)(3). Pub. L. 96-596, 2(a)(2)(H), substituted provision defining taxable period as the period beginning
with the end of the plan year in which there is an accumulated funding deficiency
and ending on the earlier of the date of mailing of a notice of deficiency with respect
to the tax imposed by subsec. (a) of this section or the date on which the tax imposed
by subsec. (a) of this section is assessed for provision defining correction period
as the period beginning with the end of a plan year in which there is an accumulated
funding deficiency and ending 90 days after the date of mailing of a notice of deficiency
under section 6212 of this title with respect to the tax imposed by subsec. (b) of
this section, extended by any period in which a deficiency cannot be assessed under
section 6213(a) of this title and by any other period which the Secretary determines
reasonable and necessary to permit a reduction of the accumulated funding deficiency
to zero.
Subsec. (d). Pub. L. 96-364, 204(2), inserted provisions relating to a multiemployer plan in reorganization.
1976--Subsecs. (c), (d). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(225)-(228) and 401(b)(44), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following Savings Provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or
(d)
applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such
date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would
(without regard to the amendments or repeals made by such subsection)
affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect
the treatment of such transaction, property, or item for purposes of determining liability
for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Section 202(c) of Pub. L. 113-97 effective for years beginning after December 31, 2013.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Section 101(d)(2)(F) of Pub. L. 110-458 effective as if included in the provisions of the Pension Protection Act of 2006
[Pub. L. 109-280, Sec. 114] to which they relate.
Amendments by Section 102(b)(2)(I) of Pub. L. 110-458 effective as if included in the provisions of the Pension Protection Act of 2006
[Pub. L. 109-280, Sec. 212] to which they relate.
EFFECTIVE DATE OF 2006 AMENDMENTS
Section 114(g)(2) of Pub. L. 109-280, added by Pub. L. 110-458, Sec. 101(d)(3), provided that:
“(2) Excise Tax.—The amendments made by subsection (e) shall apply to taxable years
beginning after 2007, but only with respect to plan years described in paragraph (1)
which end with or within any such taxable year.”
Section 212(e)(1) of Pub. L. 109-280, as amended by Pub. L. 110-458, Sec. 102(b)(3), provided that: “the amendments made by subsection (b) shall apply to taxable years
beginning after 2007, but only with respect to plan years beginning after 2007 which
end with or within any such taxable year”.
Section 221(c) of Pub. L. 109-280, before being repealed by Pub. L. 113-235, Div. O, Sec. 101(a)
effective with respect to plans years beginning after Dec. 31, 2014
(and subsequently amended by Pub. L. 113-295, Div. A, Sec. 172(a), after repeal), provided that:
“(1) IN GENERAL- Except as provided in this subsection, notwithstanding any other
provision of this Act, the provisions of, and the amendments made by, sections 201(b),
202, and 212 shall not apply to plan years beginning after December 31, 2015.
“(2) FUNDING IMPROVEMENT AND REHABILITATION PLANS-
If a plan is operating under a funding improvement or rehabilitation plan under section
305 of such Act or 432 of such Code for its last year beginning before January 1,
2016, such plan shall continue to operate under such funding improvement or rehabilitation
plan during any period after December 31, 2014, such funding improvement or rehabilitation
plan is in effect and all provisions of such Act or Code relating to the operation
of such funding improvement or rehabilitation plan shall continue in effect during
such period.”
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1464(b) of Pub. L. 104-188 provided that: “The amendment made by this section shall take effect as if included
in the amendment made by clause (ii) of section 751(a)(9)(B) of the Retirement Protection
Act of 1994 (108 Stat. 5020).”
EFFECTIVE DATE OF 1987 AMENDMENT
Section 9304(c)(2) of Pub. L. 100-203 provided that: “The amendments made by this subsection [amending this section] shall
apply to plan years beginning after 1988.”
Amendment by section 9305(a) of Pub. L. 100-203 applicable with respect to plan years beginning after December 31, 1987, see section
9305(d) of Pub. L. 100-203, set out as a note under section 412 of this title.
EFFECTIVE DATE OF 1980 AMENDMENTS
For effective date of amendment by Pub. L. 96-596 with respect to any first tier tax and to any second tier tax, see section 2(d) of
Pub. L. 96-596, set out as an Effective Date note under section 4961 of this title.
Amendment by Pub. L. 96-364 effective Sept. 26, 1980, see section 210(a)
of Pub. L. 96-364, set out as an Effective Date note under section 418 of this title.
EXEMPTION FROM EXCISE TAXES FOR CERTAIN MULTIEMPLOYER PENSION PLANS
“(a) In General- Notwithstanding any other provision of law, no tax shall be imposed
under subsection (a) or (b) of section 4971 of the Internal Revenue Code of 1986 with respect to any accumulated funding deficiency of a plan
described in subsection (b) of this section for any taxable year beginning before
the earlier of--
“(1) the taxable year in which the plan sponsor adopts a rehabilitation plan under
section 305(e) of the Employee Retirement Income Security Act of 1974 and section
432(e) of such Code (as added by this Act); or
“(2) the taxable year that contains January 1, 2009.
“(b) Plan Described- A plan described under this subsection is a multiemployer
pension plan--
“(1) with less than 100 participants;
“(2) with respect to which the contributing employers participated in a Federal fishery
capacity reduction program;
“(3) with respect to which employers under the plan participated in the Northeast
Fisheries Assistance Program; and
“(4) with respect to which the annual normal cost is less than $100,000 and the plan
is experiencing a funding deficiency on the date of enactment of this Act.”
EFFECTIVE DATE
Section applicable, except as otherwise provided in section 1017(c) through (i) of
Pub. L. 93-406, for plan years beginning after Sept. 2, 1974, and, in the case of plans in existence
on Jan. 1, 1974, for plan years beginning after Dec. 31, 1975, see section 1017 of
Pub. L. 93-406, set out as an Effective Date; Transitional Rules note under section 410 of this
title.
