PUBLIC LAW 96-596—DEC. 24, 1980
94 STAT. 3473
to a final decision of the Tax Court shall be treated as including a final decision in such supplemental proceeding. "(c) SUSPENSION OF PERIOD OF COLLECTION FOR SECOND TIER TAX.— "(1) PROCEEDING IN DISTRICT COURT OR COURT OF CLAIMS.—If,
not later than 90 days after the day on which the second tier tax is assessed, the first tier tax is paid in full and a claim for refund of the amount so paid is filed, no levy or proceeding in court for the collection of the second tier tax shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in paragraph (2) (and of any supplemental proceeding with respect thereto under subsection (b)). Notwithstanding section 7421(a), the collection by levy or proceeding may be enjoined during the time such prohibition is in force by a proceeding in the proper court. "(2) SUIT MUST BE BROUGHT TO DETERMINE LIABILITY.—If, within 90 days after the day on which his claim for refund is denied, the person against whom the second tier tax was assessed fails to begin a proceeding described in section 7422 for the determination of his liability for such tax, paragraph (1) shall cease to apply with respect to such tax, effective on the day following the close of the 90-day period referred to in this paragraph. "(3) SUSPENSION OF RUNNING OF PERIOD OF LIMITATIONS ON
COLLECTION.—The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court with respect to any second tier tax described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court. "(4) JEOPARDY COLLECTION.—If the Secretary makes a finding that the collection of the second tier tax is in jeopardy, nothing in this subsection shall prevent the immediate collection of such tax. "SEC. 4962. DEFINITIONS.
"(a) FIRST TIER TAX.—For purposes of this subchapter, the term 'first tier tax' means any tax imposed by subsection (a) of section 4941, 4942,4943,4944,4945,4951,4952,4971, or 4975. "(b) SECOND TIER TAX.—For purposes of this subchapter, the term 'second tier tax' means any tax imposed by subsection (b) of section 4941,4942,4943,4944,4945,4951,4952,4971, or 4975. "(c) TAXABLE EVENT.—For purposes of this subchapter, the term 'taxable event' means any act (or failure to act) giving rise to liability for tax under section 4941, 4942, 4943, 4944, 4945, 4951, 4952, 4971, or 4975. "(d) CORRECT.—For purposes of this subchapter— "(1) IN GENERAL.—Except as provided in paragraph (2), the term 'correct' has the same meaning as when used in the section which imposes the second tier tax. "(2) SPECIAL RULES.—The term 'correct' means— "(A) in the case of the second tier tax imposed by section 4942(b), reducing the amount of the undistributed income to zero, "(B) in the case of the second tier tax imposed by section 4943(b), reducing the amount of the excess business holdings to zero, and "(C) in the case of the second tier tax imposed by section 4944, removing the investment from jeopardy. "(e) CORRECTION PERIOD.—For purposes of this subchapter—
26 USC 4962.
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