Tax on certain dispositions by employee stock ownership plans and certain cooperatives

If, during the 3-year period after the date on which the employee stock ownership plan or eligible worker-owned cooperative acquired any qualified securities in a sale to which section 1042 applied or acquired any qualified employer securities in a qualified gratuitous transfer to which section 664(g) applied, such plan or cooperative disposes of any qualified securities and— The amount of the tax imposed by subsection (a) shall be equal to 10 percent of the amount realized on the disposition. The amount realized taken into account under paragraph (1) shall not exceed that portion allocable to qualified securities acquired in the sale to which section 1042 applied or acquired in the qualified gratuitous transfer to which section 664(g) applied determined as if such securities were disposed of— The amount realized on any distribution to an employee for less than fair market value shall be determined as if the qualified security had been sold to the employee at fair market value. The tax imposed by this subsection shall be paid by— This section shall not apply with respect to any distribution of qualified securities (or sale of such securities) which is made by reason of— In the case of any exchange of qualified securities in any reorganization described in section 368(a)(1) for stock of another corporation, such exchange shall not be treated as a disposition for purposes of this section. In the case of any exchange of qualified securities pursuant to the liquidation of the corporation issuing qualified securities into the eligible worker-owned cooperative in a transaction which meets the requirements of section 332 (determined by substituting “100 percent” for “80 percent” each place it appears in section 332(b)(1)), such exchange shall not be treated as a disposition for purposes of this section. This section shall not apply to any disposition of qualified securities which is required under section 401(a)(28). For purposes of this section— The term “employee stock ownership plan” has the meaning given to such term by section 4975(e)(7). The term “qualified securities” has the meaning given to such term by section 1042(c)(1); except that such section shall be applied without regard to subparagraph (B) thereof for purposes of applying this section and section 4979A with respect to securities acquired in a qualified gratuitous transfer (as defined in section 664(g)(1)). The term “eligible worker-owned cooperative” has the meaning given to such term by section 1042(c)(2). The term “disposition” includes any distribution. The term “employer securities” has the meaning given to such term by section 409(l).