120 STAT. 1074
26 USC 6050V.
PUBLIC LAW 109–280—AUG. 17, 2006
(c) STUDY.— (1) IN GENERAL.—The Secretary of the Treasury shall undertake a study on— (A) the use by tax exempt organizations of applicable insurance contracts (as defined under section 6050V(d)(2) of the Internal Revenue Code of 1986, as added by subsection (a)) for the purpose of sharing the benefits of the organization’s insurable interest in individuals insured under such contracts with investors, and (B) whether such activities are consistent with the tax exempt status of such organizations. (2) REPORT.—Not later than 30 months after the date of the enactment of this Act, the Secretary of the Treasury shall report on the study conducted under paragraph (1) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to acquisitions of contracts after the date of enactment of this Act. SEC. 1212. INCREASE IN PENALTY EXCISE TAXES RELATING TO PUBLIC CHARITIES, SOCIAL WELFARE ORGANIZATIONS, AND PRIVATE FOUNDATIONS.
26 USC 4941.
VerDate 14-DEC-2004
10:20 Jul 12, 2007
(a) TAXES ON SELF-DEALING AND EXCESS BENEFIT TRANSACTIONS.— (1) IN GENERAL.—Section 4941(a) (relating to initial taxes) is amended— (A) in paragraph (1), by striking ‘‘5 percent’’ and inserting ‘‘10 percent’’, and 1⁄2 percent’’ and (B) in paragraph (2), by striking ‘‘2 inserting ‘‘5 percent’’. (2) INCREASED LIMITATION FOR MANAGERS ON SELFDEALING.—Section 4941(c)(2) is amended by striking ‘‘$10,000’’ each place it appears in the text and heading thereof and inserting ‘‘$20,000’’. (3) INCREASED LIMITATION FOR MANAGERS ON EXCESS BENEFIT TRANSACTIONS.—Section 4958(d)(2) is amended by striking ‘‘$10,000’’ and inserting ‘‘$20,000’’. (b) TAXES ON FAILURE TO DISTRIBUTE INCOME.—Section 4942(a) (relating to initial tax) is amended by striking ‘‘15 percent’’ and inserting ‘‘30 percent’’. (c) TAXES ON EXCESS BUSINESS HOLDINGS.—Section 4943(a)(1) (relating to imposition) is amended by striking ‘‘5 percent’’ and inserting ‘‘10 percent’’. (d) TAXES ON INVESTMENTS WHICH JEOPARDIZE CHARITABLE PURPOSE.— (1) IN GENERAL.—Section 4944(a) (relating to initial taxes) is amended by striking ‘‘5 percent’’ both places it appears and inserting ‘‘10 percent’’. (2) INCREASED LIMITATION FOR MANAGERS.—Section 4944(d)(2) is amended— (A) by striking ‘‘$5,000,’’ and inserting ‘‘$10,000,’’, and (B) by striking ‘‘$10,000.’’ and inserting ‘‘$20,000.’’. (e) TAXES ON TAXABLE EXPENDITURES.— (1) IN GENERAL.—Section 4945(a) (relating to initial taxes) is amended—
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