[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: 26CFR53.4951-1]

[Page 208]
 
                       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 J_ Black Lung Benefit Trust Excise Taxes
 
Sec. 53.4951-1  Black lung trusts--taxes on self-dealing.

    Source: T.D. 7644, 44 FR 52198, Sept. 7, 1979, unless otherwise 
noted.


    (a) In general. Section 4951 contains provisions that correspond to 
provisions of section 4941 (relating to taxes on foundation self-
dealing) and section 4946 (relating to definitions and special rules). 
Regulations and rulings under these corresponding provisions apply to 
section 4951 where appropriate.
    (b) Transfer of property to trust. A transfer of personal property 
without consideration to a trust for which a deduction is allowable 
under section 192 does not constitute a sale or exchange for purposes of 
section 4951 unless the property is subject to a mortgage or similar 
lien within section 4951(d)(2)(A). The transfer to a trust of a note or 
other evidence of indebtedness constitutes an extension of credit to the 
obligor for purposes of section 4951(d)(1)(B).
    (c) Deposits. A time or demand deposit made with a bank or credit 
union that is a trustee or other disqualified person with respect to a 
trust constitutes a lending of money for purposes of section 
4951(d)(1)(B) even though the deposit is of a kind generally authorized 
for investments by the trust.
    (d) Trustee. The term ``trustee'' as used in section 4951(e)(5)(B) 
includes any person having powers or responsibilities with respect to a 
trust similar to those of trustees.
    (e) Misallocation of insurance premium. Under section 
501(c)(21)(A)(ii) and Sec. 1.501(c)(21)-1(d), a trust may pay a portion 
of a premium for insurance which covers both black lung liabilities and 
other liabilities, so long as the requirements of section 
501(c)(21)(A)(i) concerning allocation of the total premium are met. 
However, if an insurance company misallocates the total premium in a 
manner which benefits a disqualified person, the amount of misallocation 
constitutes a use of trust assets for the benefit of the disqualified 
person within section 4951(d)(1)(D). For these purposes, it is 
irrelevant whether the combination of insurance is sold under one policy 
or more than one policy.
    (f) Effective date. Section 4951 applies with respect to acts that 
occur after December 31, 1977, in and for trust taxable years beginning 
after December 31, 1977.