26 U.S.C. § 4977 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 4977. Tax on certain fringe benefits provided by an employer

(a) Imposition of tax.--In the case of an employer to whom an election under this section applies for any calendar year, there is hereby imposed a tax for such calendar year equal to 30 percent of the excess fringe benefits.

(b) Excess fringe benefits.--For purposes of subsection (a), the term “excess fringe benefits” means, with respect to any calendar year--

(c) Effect of election on section 132(a).--If--

for purposes of paragraphs (1) and (2) of section 132(a) (but not for purposes of section 132(h)), all employees of any line of business of the employer which was in existence on January 1, 1984, shall be treated as employees of the line of business referred to in paragraph (2).

(d) Period of election.--An election under this section shall apply to the calendar year for which made and all subsequent calendar years unless revoked by the employer.

(e) Treatment of controlled groups.--All employees treated as employed by a single employer under subsection (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of this section.

(f) Section to apply only to employment within the United States.--Except as otherwise provided in regulations, this section shall apply only with respect to employment within the United States.