Page:United States Statutes at Large Volume 83.djvu/543

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[83 STAT. 515]
[83 STAT. 515]
PUBLIC LAW 91-000—MMMM. DD, 1969

83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

" (h) ExPENDiTUEE EESPONSEBILITY.—The expenditure responsibility referred to in subsection (d)(4) means that the private foundation is responsible to exert all reasonable efforts and to establish adequate procedures— "(1) to see that the grant is spent solely for the purpose for which made, " (2) to obtain full and complete reports from the grantee on how the funds are spent, and "(3) to make full and detailed reports with respect to such expenditures to the Secretary or his delegate. "(i) OTHER DEFINITIONS.—For purposes of this section— "(1) CORRECTION.—The terms 'correction' and 'correct' mean, with respect to any taxable expenditure, (A) recovering part or all of the expenditure to the extent recovery is possible, and where full recovery is not possible such additional corrective action as is prescribed by the Secretary or his delegate by regulations, or (B) in the case of a failure to comply with subsection (h)(2) or (h)(3), obtaining or making the report in question. "(2) CORRECTION PERIOD.—The term 'correction period' means, with respect to any taxable expenditure, the period beginning with the date on which the taxable expenditure occurs and ending 90 days after the date of mailing of a notice of deficiency with respect to the tax imposed by subsection (b)(1) under section 6212, extended by—. . . . " (A) any period in which a deficiency cannot be assessed

515

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under section J6213 (a), and

" (B) any other period which the Secretary or his delegate determines is reasonable and necessary to bring about correction of the taxable expenditure (except that such determination shall not be made with respect to any taxable expenditure within the meaning of paragraph (1), (2), (3), or (4) of subsection (d) because of any action by an appropriate State officer as defined in section 6104(c)(2)). ^°^ P- ^^S"SEC. 4946. DEFINITIONS AND SPECIAL RULES. " (a) DISQUALIFIED PERSON.—

"(1) IN GENERAL.—For purposes of this chapter, the term 'disqualified person' means, with respect to a private foundation, a person who is— " (A) a substantial contributor to the foundation, " (B) a foundation manager (within the meaning of subsection (b)(1)), " (C) an owner of more than 20 percent of— " (i) the total combined voting power of a corporation, " (ii) the profits interest of a partnership, or "(iii) the beneficial interest of a trust or unincorporated enterprise, which is a substantial contributor to the foundation, " (D) a member of the family (as defined in subsection (d)) of any individual described in subparagraph (A), (B), or " (E) a corporation of which persons described in subparagraph (A), (B), (C), o r (D) own more than 35 percent of the total combined voting ^ w e r, " (F) a partnership in which persons described in subparagraph (A), (B), (C), or (D) own more than 35 percent of the profits interest,