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PUBLIC LAW 91-172-DEC. 30, 1969
[83 STAT.
TITLE I—TAX EXEMPT ORGANIZATIONS Subtitle A—Private Foundations
68A Stat. 163. 26 USC 501-
526" " " " " " '
SEC. 101. PRIVATE FOUNDATIONS. (a) IN GENERAL.—Subchapter F of chapter 1 (relating to exempt organizations) is amended by redesignating parts II, III, and IV as parts III, IV, and V, respectively, and by inserting after part I the following new part: "PART II—PRIVATE FOUNDATIONS "Sec. "Sec. "Sec. "SEC.
507. Termination of private foundation status. 508. Special rules with respect to section 501(c)(3) organizations. 509. Private foundation defined. 507. TERMINATION OF PRIVATE FOUNDATION STATUS. " (a) GENERAL RULE.—Except as provided in subsection (b), the
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status of any organization as a private foundation shall be terminated only if— "(1) such organization notifies the Secretary or his delegate (at such time and in such manner as the Secretary or his delegate may by regulations prescribe) of its intent to accomplish such termination, or "(2)(A) with respect to such organization, there have been either willful repeated acts (or failures to act), or a willful and flagrant act (or failure to act), giving rise to liability for tax under chapter 42, and " (B) the Secretary or his delegate notifies such organization that, by reason of subparagraph (A), such organization is liable for the tax imposed by subsection (c), and either such organization pays the tax imposed by subsection (c) (or any portion not abated under subsection (g)) or the entire amount of such tax is abated under subsection (g). " (b) SPECIAL RULES.— "(1) TRANSFER TO, OR OPERATION AS, PUBLIC CHARITY.—The
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status as a private foundation of any organization, with respect to which there have not been either willful repeated acts (or failures to act) or a willful and flagrant act (or failure to act) giving rise to liability for tax under chapter 42, shall be terminated if— " (A) such organization distributes all of its net assets to one or more organizations described in section 170(b)(1) ^^^ (other than in clauses (vii) and (viii)) each of which has been in existence and so described for a continuous period of at least 60 calendar months immediately preceding such distribution, or " (B)(i) such organization meets the requirements of paragraph (1), (2), or (3) of section 509(a) by the end of the 12-month period beginning with its first taxable year which begins after December 31, 1969, or for a continuous period of 60 calendar months beginning with the first day of any taxable year which begins after December 31, 1969, "(ii) such organization notifies the Secretary or his delegate (in such manner as the Secretary or his delegate may by regulations prescribe) before the commencement of such 12-month or 60-month period (or before the 90th day after the day on which regulations first prescribed under this subsection become final) that it is terminating its private foundation status, and
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