[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: 26CFR53.4943-11]

[Page 151-152]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 53_FOUNDATION AND SIMILAR EXCISE TAXES--Table of Contents
 
               Subpart D_Taxes on Excess Business Holdings
 
Sec. 53.4943-11  Effective date.

    (a) In general. Section 4943 and Sec. Sec. 53.4943-1 through 
53.4943-11 shall take effect for taxable years beginning after December 
31, 1969, except as otherwise provided by such sections.
    (b) Special transitional rule. In the case of any acquisition of 
excess holdings prior to February 2, 1973, section 4943(a)(1) shall not 
apply if correction occurs (within the meaning of paragraph (c) of Sec. 
53.4943-9) within a period ending 90 days after July 5, 1977 extended 
(prior to the expiration of the original period) by any period which the 
Commissioner determines is reasonable and necessary (within the meaning 
of paragraph (b) of Sec. 53.4943-9) to bring about such correction.
    (c) Special transitional rule for acquisition by will, etc. (1) The 
rule in Sec. 53.4943-6(b)(1) whereby holdings not held by a decedent 
are not treated as acquired under a will shall not apply to acquisitions 
of after-acquired property of a decedent's estate occurring on or before 
May 22, 1984.
    (2) The rule in Sec. 53.4943-6(b)(1) treating a purchase by an 
estate as a purchase by a disqualified person where the executor is a 
disqualified person shall not apply to purchases occurring on or before 
May 22, 1984.

[[Page 152]]

    (d) Special transitional rule for affiliated groups. If on or before 
May 22, 1984 a foundation holds an interest in a common parent 
corporation in an affiliated group, as defined in Sec. 53.4943-
10(c)(3)(ii), the foundation may elect to have both Sec. 53.4943-
8(c)(4) and Sec. 53.4943-10(c)(3) not apply to such common parent 
corporation. No election may be made to have only one section not apply. 
Such election shall be made by the governing body of the private 
foundation at any time prior to February 22, 1985.
    (e) Special transitional rule for changes to a business enterprise. 
Any interest that is not an interest in a business enterprise which 
becomes an interest in a business enterprise under Sec. 53.4943-
10(d)(2) prior to May 22, 1984 will be treated as having been acquired 
other than by purchase for purposes of section 4943(c)(6).

[T.D. 7496, 42 FR 46285, Sept. 15, 1977, as amended by T.D. 7944, 49 FR 
6485, Feb. 22, 1984]