120 STAT. 370
PUBLIC LAW 109–222—MAY 17, 2006
‘‘(ii) 75 percent of the proceeds received by the entity for the taxable year which are attributable to the prohibited tax shelter transaction. This subparagraph shall not apply to any prohibited tax shelter transaction to which a tax-exempt entity became a party on or before the date of the enactment of this section. ‘‘(2) ENTITY MANAGER.—In the case of each entity manager, the amount of the tax imposed under subsection (a)(2) shall be $20,000 for each approval (or other act causing participation) described in subsection (a)(2). ‘‘(c) TAX-EXEMPT ENTITY.—For purposes of this section, the term ‘tax-exempt entity’ means an entity which is— ‘‘(1) described in section 501(c) or 501(d), ‘‘(2) described in section 170(c) (other than the United States), ‘‘(3) an Indian tribal government (within the meaning of section 7701(a)(40)), ‘‘(4) described in paragraph (1), (2), or (3) of section 4979(e), ‘‘(5) a program described in section 529, ‘‘(6) an eligible deferred compensation plan described in section 457(b) which is maintained by an employer described in section 4457(e)(1)(A), or ‘‘(7) an arrangement described in section 4973(a). ‘‘(d) ENTITY MANAGER.—For purposes of this section, the term ‘entity manager’ means— ‘‘(1) in the case of an entity described in paragraph (1), (2), or (3) of subsection (c)— ‘‘(A) the person with authority or responsibility similar to that exercised by an officer, director, or trustee of an organization, and ‘‘(B) with respect to any act, the person having authority or responsibility with respect to such act, and ‘‘(2) in the case of an entity described in paragraph (4), (5), (6), or (7) of subsection (c), the person who approves or otherwise causes the entity to be a party to the prohibited tax shelter transaction. ‘‘(e) PROHIBITED TAX SHELTER TRANSACTION; SUBSEQUENTLY LISTED TRANSACTION.—For purposes of this section— ‘‘(1) PROHIBITED TAX SHELTER TRANSACTION.— ‘‘(A) IN GENERAL.—The term ‘prohibited tax shelter transaction’ means— ‘‘(i) any listed transaction, and ‘‘(ii) any prohibited reportable transaction. ‘‘(B) LISTED TRANSACTION.—The term ‘listed transaction’ has the meaning given such term by section 6707A(c)(2). ‘‘(C) PROHIBITED REPORTABLE TRANSACTION.—The term ‘prohibited reportable transaction’ means any confidential transaction or any transaction with contractual protection (as defined under regulations prescribed by the Secretary) which is a reportable transaction (as defined in section 6707A(c)(1)). ‘‘(2) SUBSEQUENTLY LISTED TRANSACTION.—The term ‘subsequently listed transaction’ means any transaction to which a tax-exempt entity is a party and which is determined by the Secretary to be a listed transaction at any time after
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