prohibited allocation
Defined in 1 place of the United States Code.
For purposes of this section, the term "prohibited allocation" means—
Source
- 1997–present26 U.S.C. § 4979AInternal Revenue Code · Tax on certain prohibited allocations of qualified securities · for purposes of this section
For purposes of this section, the term “prohibited allocation” means—
(1) any allocation of qualified securities acquired in a sale to which section 1042 applies which violates the provisions of section 409(n), and
(2) any benefit which accrues to any person in violation of the provisions of section 409(n).
Source
- 201326 U.S.C. § 4979AInternal Revenue Code · Tax on certain prohibited allocations of qualified securities · for purposes of this section
For purposes of this section, the term “prohibited allocation” means—
(1) any allocation of qualified securities acquired in a sale to which section 1042 applies which violates the provisions of section 409(n), and
(2) any benefit which accrues to any person in violation of the provisions of section 409(n).
The tax imposed by this section shall be paid by—
(1) the employer sponsoring such plan, or
(2) the eligible worker-owned cooperative,
which made the written statement described in section 1042(b)(3)(B).
Terms used in this section have the same respective meaning as when used in section 4978.
Source
- 1994–199726 U.S.C. § 4979AInternal Revenue Code · Tax on certain prohibited allocations of qualified securities · for purposes of this section