92 STAT. 18
PUBLIC LAW 95-227—FEB. 10, 1978 (c) E X C I S E TAXES ON ACT S OF S E L F - D E A L I N G, TAXABLE EXPENDITURES, AND EXCESS CONTRIBUTIONS.—
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26 USC 4951.
(1) IN GENERAL.—Chapter 42 of such Code (relating to private foundations) is amended by a d d i n g a t the end thereof the following new subchapter: "Subchapter B—Black Lung Benefit Trusts "Sec. 4951. Taxes on self-dealing. "Sec. 4952. Taxes on taxable expenditures. "Sec. 4953. Tax on excess contributions to black lung benefit trusts. "SEC. 4951. TAXES ON SELF-DEALING. " (a) INITIAL TAXES.—
Ante, p. 15.
" (1) O N SELF-DEALER.—There is hereby imposed a tax on each act of self-dealing between a disqualified person and a trust described in section 501(c) (21). The rate of tax shall be equal to 10 percent of the amount involved with respect to the act of self-dealing for each year (or part thereof) i n the taxable period. The tax imposed by this paragraph shall be paid by any disqualified person (other than a trustee acting only as a trustee of the t r u s t) who participates in the act of self-dealing. " (2) O N TRUSTEE.—In any case i n which a tax is imposed by paragraph (1), there is hereby imposed on the participation of any trustee of such a trust in an act of self-dealing between a disqualified person and the trust, knowing that it is such an act, a tax equal to 2i/^ percent of the amount involved with respect to the act of self-dealing for each year (or part thereof) in the taxable period, unless such participation is not willful and is due to reasonable cause. The tax imposed by this paragraph shall be paid by any such trustee who participated in the act of self-dealing. " (b) ADDITIONAL T A X E S. —
" (1) O N SELF-DEALER.—In any case i n which a n initial tax is imposed by subsection (a)(1) on a n act of self-dealing by a disqualified person with a trust described in section 501(c) (21) and in which the act is not corrected within the correction period, there is hereby imposed a tax equal to 100 percent of the amount involved. The tax imposed by this paragraph shall be paid by any disqualified pereon (other than a trustee acting only as a trustee of such a trust) who participated in the act of self-dealing. " (2) O N TRUSTEE.—In any case in which an additional tax is imposed by paragraph (1), if a trustee of such a trust refused to agree to part or all of the correction, there is hereby imposed a tax e{|ual to 50 percent of the amount involved. The tax imposed by this paragraph shall be paid by any such trustee who refused to agree to part or all of the correction.
- '(c) JOINT AND SEVERAL L I A B I L I T Y. — I f more than one person i s
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. "(d)
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SELF-DEALING.—
" (1) IN GENERAL.—For purposes of this section, the term 'selfdealing' means any direct or indirect— " (A) sale, exchange, o r leasing of real or personal property between a trust described in section 501(c) (21) and a disqualified person;
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