B. Disqualified Persons

(1) The next step (after the identification of an ATEO) in reviewing a potential excess

benefit transaction is determining if the individual or entity involved is a disqualified person.

(2) The definition of a disqualified person varies in the Code. For purposes of excess

benefit transactions as defined in Section 4958(f), as noted in the following paragraph, the definition of a disqualified person is different than the definition of disqualified person as defined in Section 4946 which applies to private foundations.