26 CFR § 54.4975-12 - Definition of the term “qualifying employer security”.

---
identifier: "/us/cfr/t26/s54.4975-12"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 54.4975-12 - Definition of the term “qualifying employer security”."
title_number: 26
title_name: "Internal Revenue"
section_number: "54.4975-12"
section_name: "Definition of the term “qualifying employer security”."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "D"
subchapter_name: "MISCELLANEOUS EXCISE TAXES"
part_number: "54"
part_name: "PENSION 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, unless otherwise noted."
cfr_part: "54"
---


# 54.4975-12 Definition of the term “qualifying employer security”.

(a) *In general.* For purposes of section 4975(e)(8) and this section, the term “qualifying employer security” means an employer security which is:

(1) Stock or otherwise an equity security, or

(2) A bond, debenture, note, or certificate or other evidence of indebtedness which is described in paragraphs (1), (2), and (3) of section 503(e).

(b) *Special rule.* In determining whether a bond, debenture, note, or certificate or other evidence of indebtedness is described in paragraphs (1), (2), and (3) of section 503(e), any organization described in section 401(a) shall be treated as an organization subject to the provisions of section 503.

(Sec. 4975(e)(7) (88 Stat. 976; 26 U.S.C. 4975(e)(7)))

[T.D. 7506, 42 FR 44394, Sept. 2, 1977]