[Code of Federal Regulations]
[Title 26, Volume 17]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR143.6]

[Page 446]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 143_TEMPORARY EXCISE TAX REGULATIONS UNDER THE TAX REFORM ACT OF 
1969--Table of Contents
 
Sec. 143.6  Election to shorten the period during which certain excess 
business holdings of private foundations are treated as permitted holdings.

    (a) In general. Under section 4943(c)(4)(B)(ii), where the combined 
holdings on May 26, 1969, of a private foundation and all disqualified 
persons in any one business enterprise exceed 75 percent of the voting 
stock or more than a 75 percent interest in the value of all outstanding 
shares of all classes of stock in such enterprise, and the foundation's 
holdings on such date do not exceed 95 percent of the voting stock in 
such enterprise, then such combined holdings must be reduced to 50 
percent of the voting stock of such enterprise by the end of a 15-year 
period beginning on May 26, 1969. However, under section 4943(c)(4)(E), 
the 15-year period during which such combined holdings in the enterprise 
must be reduced to 50 percent is to be shortened to a 10-year period, 
referred to in section 4943(c)(4)(B)(iii), if, at any time before 
January 1, 1971, one or more individuals:
    (1) Who are substantial contributors (as described in section 
507(d)(2)) or members of the family within the meaning of section 
4946(d) of one or more substantial contributors to such private 
foundation, and
    (2) Who on May 26, 1969, held in aggregate more than 15 percent of 
the voting stock of the enterprise, make an election in the manner 
described in paragraph (b). If an individual who owns 15 percent or less 
of the voting stock of the enterprise wishes to make an election under 
this paragraph, he and one or more other individuals who together own 
more than 15 percent of the voting stock of the enterprise may join in 
making an election by together filing the statement referred to in 
paragraph (b) of this section.
    (b) Manner of making election. The election referred to in paragraph 
(a) of this section is made by filing two copies of a written statement 
with the Office of the Assistant Commissioner (Technical), Internal 
Revenue Service, Washington, DC 20224.
    (c) Additional copies. The individual filing the written statement 
referred to in paragraph (b) of this section shall submit a copy of the 
statement to the private foundation with respect to which the election 
is being made and to the management of such business enterprise.
    (d) Content of statement. The statement shall indicate that an 
election is being made under section 4943(c) (4)(E) of the Code, and 
shall be signed by each of the individuals making the election, and, in 
addition shall contain the following information:
    (1) The name, address, and taxpayer identification number of each of 
the individuals making the election;
    (2) The name and address of the foundation with respect to which 
such election is being made;
    (3) The name and address of the business enterprise with respect to 
which the election is being made;
    (4) The aggregate number of shares of voting stock in the business 
enterprise that were held on May 26, 1969, by each individual making the 
election, and, in addition, the percentage that such voting stock is of 
the total number of shares of voting stock issued and outstanding on 
such date;
    (5) The aggregate number of shares of voting stock in the business 
enterprise held by the private foundation on May 26, 1969, and, in 
addition, the percentage that such voting stock is of the total number 
of shares of voting stock issued and outstanding on such date; and
    (6) The total number of shares of voting stock in the business 
enterprise or the best available estimate thereof, that were issued and 
outstanding on May 26, 1969.
    (e) Time for making election. The statement referred to in paragraph 
(b) of this section shall be filed before January 1, 1971.

[T.D. 7038, 35 FR 6962, May 1, 1970]

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