[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR53.4958-2T]

[Page 216-217]
 
                       TITLE 26--INTERNAL REVENUE
 
                  CHAPTER I--INTERNAL REVENUE SERVICE,
                       DEPARTMENT OF THE TREASURY
                               (Continued)
 
PART 53--FOUNDATION AND SIMILAR EXCISE TAXES--Table of Contents
 
                   Subpart K--Second Tier Excise Taxes
 
Sec. 53.4958-2T  Definition of applicable tax-exempt organization (temporary).

    (a) Organizations described in section 501(c)(3) or (4) and exempt 
from tax under section 501(a)--(1) In general. An applicable tax-exempt 
organization is any organization that, without regard to any excess 
benefit, would be described in section 501(c)(3) or (4) and exempt from 
tax under section 501(a). An applicable tax-exempt organization also 
includes any organization that was described in section 501(c)(3) or (4) 
and was exempt from tax under section 501(a) at any time during a five-
year period ending on the date of an excess benefit transaction (the 
lookback period). A private foundation as defined in section 509(a) is 
not an applicable tax-exempt organization for section 4958 purposes. A 
governmental entity that is exempt from (or not subject to) taxation 
without regard to section 501(a) is not an applicable tax-exempt 
organization for section 4958 purposes.

[[Page 217]]

    (2) Organizations described in section 501(c)(3). An organization is 
described in section 501(c)(3) for purposes of section 4958 only if the 
organization provides the notice described in section 508, unless the 
organization otherwise is described in section 501(c)(3) and 
specifically is excluded from the requirements of section 508 by that 
section.
    (3) Organizations described in section 501(c)(4). An organization is 
described in section 501(c)(4) for purposes of section 4958 if the 
organization--
    (i) Has applied for and received recognition from the Internal 
Revenue Service as an organization described in section 501(c)(4); or
    (ii) Has filed an application for recognition under section 
501(c)(4) with the Internal Revenue Service, has filed an annual 
information return as a section 501(c)(4) organization under the 
Internal Revenue Code or regulations promulgated thereunder, or has 
otherwise held itself out as being described in section 501(c)(4) and 
exempt from tax under section 501(a).
    (4) Effect of non-recognition or revocation of exempt status. An 
organization is not described in paragraph (a)(2) or (a)(3) of this 
section during any period covered by a final determination or 
adjudication that the organization is not exempt from tax under section 
501(a) as an organization described in section 501(c)(3) or (4), so long 
as that determination or adjudication is not based upon participation in 
inurement or one or more excess benefit transactions. However, the 
organization may be an applicable tax-exempt organization for that 
period as a result of the five-year lookback rule described in paragraph 
(a)(1) of this section.
    (b) Special rules--(1) Transition rule for lookback period. In the 
case of any excess benefit transaction occurring before September 14, 
2000, the lookback period described in paragraph (a)(1) of this section 
begins on September 14, 1995, and ends on the date of the transaction.
    (2) Certain foreign organizations. A foreign organization, 
recognized by the Internal Revenue Service or by treaty, that receives 
substantially all of its support (other than gross investment income) 
from sources outside of the United States is not an organization 
described in section 501(c)(3) or (4) for purposes of section 4958.

[T.D. 8920, 66 FR 2156, Jan. 10, 2001]