PUBLIC LAW 104-168—JULY 30, 1996 110 STAT. 1477 "(2) any organization which was described in paragraph (1) at any time during the 5-year period ending on the date of the transaction. Such term shall not include a private foundation (as defined in section 509(a)). "(f) OTHER DEFINITIONS.— For purposes of this section— "(1) DISQUALIFIED PERSON. —The term 'disqualified person' means, with respect to any transaction— "(A) any person who was, at any time during the 5-year period ending on the date of such transaction, in a position to exercise substantial influence over the Eiffairs of the organization, "(B) a member of the family of an individual described in subparagraph (A), and "(C) a 35-percent controlled entity. "(2) ORGANIZATION MANAGER. —The term 'organization manager' means, with respect to any applicable tax-exempt organization, any officer, director, or trustee of such organization (or any individual having powers or responsibilities similar to those of officers, directors, or trustees of the organization). " (3) 35-PERCENT CONTROLLED ENTITY.— "(A) IN GENERAL.— The term '35-percent controlled entitj^* means— "(i) a corporation in which persons described in subparagraph (A) or (B) of paragraph (1) own more than 35 percent of the total combined voting power, "(ii) a partnership in which such persons own more than 35 percent of the profits interest, and "(iii) a trust or estate in which such persons own more than 35 percent of the beneficial interest. "(B) CONSTRUCTIVE OWNERSHIP RULES. —Rules similar to the rules of paragraphs (3) and (4) of section 4946(a) shall apply for purposes of this paragraph. "(4) FAMILY MEMBERS.— The members of an individual's family shall be determined under section 4946(d); except that such members also shall include the brothers and sisters (whether by the whole or half blood) of the individual and their spouses. "(5) TAXABLE PERIOD. — The term 'taxable period' means, with respect to any excess benefit transaction, the period beginning with the date on which the transaction occurs and ending on the earhest of— "(A) the date of mailing a notice of deficiency under section 6212 with respect to the tax imposed by subsection (a)(1), or "(B) the date on which the tax imposed by subsection (a)(1) is assessed. "(6) CORRECTION.—The terms 'correction' and 'correct* mean, with respect to soiy excess benefit transaction, undoing the excess benefit to the extent possible, and taking any additional measures necessary to place the organization in a financial position not worse than that in which it would be if the disqualified person were dealing under the highest fiduciary standards.". (b) APPLICATION OF PRIVATE INUREMENT RULE TO TAX-EXEMPT ORGANIZATIONS DESCRIBED IN SECTION 501(CX4). —
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