26 CFR § 53.4965-4 - Definition of tax-exempt party to a prohibited tax shelter transaction.

---
identifier: "/us/cfr/t26/s53.4965-4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 53.4965-4 - Definition of tax-exempt party to a prohibited tax shelter transaction."
title_number: 26
title_name: "Internal Revenue"
section_number: "53.4965-4"
section_name: "Definition of tax-exempt party to a prohibited tax shelter transaction."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "D"
subchapter_name: "MISCELLANEOUS EXCISE TAXES"
part_number: "53"
part_name: "FOUNDATION AND SIMILAR EXCISE TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805; 4960, unless otherwise noted."
cfr_part: "53"
---


# 53.4965-4 Definition of tax-exempt party to a prohibited tax shelter transaction.

(a) *In general.* For purposes of sections 4965 and 6033(a)(2), a tax-exempt entity is a party to a prohibited tax shelter transaction if the entity—

(1) Facilitates a prohibited tax shelter transaction by reason of its tax-exempt, tax indifferent or tax-favored status; or

(2) Is identified in published guidance, by type, class or role, as a party to a prohibited tax shelter transaction.

(b) Published guidance may identify which tax-exempt entities, by type, class or role, will not be treated as a party to a prohibited tax shelter transaction.

(c) *Example.* The following example illustrates the principle of paragraph (a)(1) of this section:

(d) *Effective/applicability dates.* See § 53.4965-9 for the discussion of the relevant effective and applicability dates.

[T.D. 9492, 75 FR 38702, July 6, 2010]