Section 2. Background

.01 Section 4971(a) provides for the imposition of an initial tax of ten percent (five percent in the case of a multiemployer plan) on the amount of the accumulated funding deficiency under a plan as determined under § 412.

.02 Section 4971(b) provides for an additional tax equal to 100 percent of any uncorrected accumulated funding deficiency on which an initial tax is imposed under § 4971(a).

.03 Section 3002(b) of the Employee Retirement Income Security Act of 1974

(“ERISA”), Pub. L. 93–406, 1974–3 C.B. 166, provides that the Secretary of the Treasury may waive the imposition of the tax imposed under § 4971(b) of the Code in appropriate cases.

.04 Rev. Rul. 79–237, 1979–2 C.B. 190, provides that in the year of termination of a plan, the tax imposed by § 4971(b) applies unless the accumulated funding deficiency, as of the end of the plan year in which the plan is terminated, is reduced to zero.

.05 Rev. Proc. 81–44, 1981–2 C.B. 618, outlines the procedure for requesting a waiver of the tax imposed under § 4971(b).