PART 143—TEMPORARY EXCISE TAX REGULATIONS UNDER THE TAX REFORM ACT OF 1969 Authority: Sec. 7805, 68A Stat. 917; 26 U.S.C. 7805. § 143.1 [Reserved] § 143.2 Taxes on self-dealing; scholarship and fellowship grants by private foundations. (a) In general. (b) Scholarship and fellowship grants. [T.D. 7030, 35 FR 4293, Mar. 10, 1970] §§ 143.3-143.4 [Reserved] § 143.5 Taxes on self-dealing; indirect transactions by a private foundation. (a) In general. (b) Indirect transactions by a private foundation. (c) Example. Example. A private foundation made a grant to an organization described in section 509(a) (1), (2), or (3) to conduct a judicial seminar. The grantee conducting the seminar made payments to certain Government officials. By the nature of the seminar the grantor foundation had reason to believe that Government officials would be compensated for participation in such seminar. The grantee, however, had complete independent control over the selection of such participants. Since the grantee has not acted as a conduit for the private foundation and has, in fact, exercised independent control over the use of the grant, such grant by the private foundation shall not constitute an act of self-dealing with respect to the Government officials. [T.D. 7036, 35 FR 6322, Apr. 18, 1970] § 143.6 Election to shorten the period during which certain excess business holdings of private foundations are treated as permitted holdings. (a) In general. (1) Who are substantial contributors (as described in section 507(d)(2)) or members of the family within the meaning of section 4946(d) of one or more substantial contributors to such private foundation, and (2) Who on May 26, 1969, held in aggregate more than 15 percent of the voting stock of the enterprise, make an election in the manner described in paragraph (b). If an individual who owns 15 percent or less of the voting stock of the enterprise wishes to make an election under this paragraph, he and one or more other individuals who together own more than 15 percent of the voting stock of the enterprise may join in making an election by together filing the statement referred to in paragraph (b) of this section. (b) Manner of making election. (c) Additional copies. (d) Content of statement. (1) The name, address, and taxpayer identification number of each of the individuals making the election; (2) The name and address of the foundation with respect to which such election is being made; (3) The name and address of the business enterprise with respect to which the election is being made; (4) The aggregate number of shares of voting stock in the business enterprise that were held on May 26, 1969, by each individual making the election, and, in addition, the percentage that such voting stock is of the total number of shares of voting stock issued and outstanding on such date; (5) The aggregate number of shares of voting stock in the business enterprise held by the private foundation on May 26, 1969, and, in addition, the percentage that such voting stock is of the total number of shares of voting stock issued and outstanding on such date; and (6) The total number of shares of voting stock in the business enterprise or the best available estimate thereof, that were issued and outstanding on May 26, 1969. (e) Time for making election. [T.D. 7038, 35 FR 6962, May 1, 1970]