500
PUBLIC LAW 91-172-DEC. 30, 1969
[83 STAT.
" (b) ADDITIONAL TAXES.—
"(1) O N SELF-DEALER.—In any case in which an initial tax is imposed by subsection (a)(1) on an act of self-dealing by a disqualified person with a private foundation and the act is not corrected within the correction period, there is hereby imposed a tax equal to 200 percent of the amount involved. The tax imposed by this paragraph shall be paid by any disqualified person (other than a foundation manager acting only as such) who participated in the act of self-dealing. "(2) O N FOUNDATION MANAGER.—In any case in which an additional tax is imposed by paragraph (1), if a foundation manager refused to agree to part or all of the correction, there is hereby imposed a tax equal to 50 percent of the amount involved. The tax imposed by this paragraph shall be paid by any foundation manager who refused to agree to part or all of the correction. " (c) SPECIAL RULES.—For purposes of subsections (a) and (b) — "(1) JOINT AND SEVERAL LIABILITY.—If more than one person is liable under any paragraph of subsection (a) or (b) with respect to any one act of self-dealing, all such persons shall be jointly and severally liable under such paragraph with respect to such act. " (2) $10,000 LIMIT FOR MANAGEMENT.—With respect to any one
act of self-dealing, the maximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000, and the maximum amount of the tax imposed by subsection (b)(2) shall not exceed $10,000. " (d) SELF-DEALING.—
"(1) IN GENERAL.—For purposes of this section, the term 'self-dealing' means any direct or indirect— " (A) sale or exchange, or leasing, of property between a private foundation and a disqualified person; " (B) lending of money or other extension of credit between a private foundation and a disqualified person; " (C) furnishing of goods, services, or facilities between a private foundation and a disqualified person; " (D) payment of compensation (or payment or reimbursement of expenses) by a private foundation to a disqualified person; " (E) transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a private foundation; and " (F) agreement by a private foundation to make any payment of money or other property to a government official (as defined in section 4946(c)), other than an agreement to employ such individual for any period after the termination of his government service if such individual is terminating his government service within a 90-day period. " (2) SPECIAL RULES.—For purposes of paragraph (1) —
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" (A) the transfer of real or personal property by a disqualified person to a private foundation shall be treated as a sale or exchange if the property is subject to a mortgage or similar lien which the foundation assumes or if it is subject to a mortgage or similar lien which a disqualified person placed on the property within the 10-year period ending on the date of the transfer; " (B) the lending of money by a disqualified person to a private foundation shall not be an act of self-dealing if the loan is without interest or other charge and if the proceeds of the loan are used exclusively for purposes specified in section 501(c)(3);
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