Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Request for Taxpayer Identification Number (TIN) and Certification
Single and Joint Filers With No Dependents
Employee's Withholding Allowance Certificate

 

Request for Transcript of Tax Returns
Employer's Quarterly Federal Tax Return
Installment Agreement Request
Wage and Tax Statement

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

Taxable Period: Jeopardizing Investments

The taxable period begins with the date of the investment and ends on the earliest of:

  1. The date of removal from jeopardy, or
  2. The date a notice of deficiency for the initial tax is mailed, or
  3. The date the initial tax is assessed.

It may include more than one tax year of the foundation.

Example.  The Wilson Foundation has the calendar year as its tax year.  It makes a jeopardizing investment on November 28, 2015, and does not remove the investment from jeopardy until January 15, 2016.  The taxable period is from November 28, 2015, to January 15, 2016.  It therefore is liable for a total initial tax of 20 percent of the amount invested (ten percent for each tax year or part of a year in the taxable period).

NOTE: Please be aware that the initial tax rate imposed by section 4944(a) changes from 5% to 10% effective for tax years beginning after 08/17/2006 as given in P.L. 109-280, §1212(d)(1 ) as provided by the Pension Protection Act of 2006.


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