LIABILITY OF MEMBERS OF CONTROLLED GROUP FOR TAXES ON FAILURE TO MEET MINIMUM FUNDING STANDARDS AND TO MAKE MINIMUM FUNDING CONTRIBUTIONS.

SEC. 9305. LIABILITY OF MEMBERS OF CONTROLLED GROUP FOR TAXES ON FAILURE TO MEET MINIMUM FUNDING STANDARDS AND TO MAKE MINIMUM FUNDING CONTRIBUTIONS. (a) Excise Tax.— (1) In general.— Section 4971 of the 1986 Code (relating to taxes on failure to meet minimum funding standards) is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: “(e) Liability for Tax.— “(1) In general.— Except as provided in paragraph (2), the tax imposed by subsection (a) or (b) shall be paid by the employer responsible for contributing to or under the plan the amount described in section 412(b)(3)(A). “(2) Joint and several liability where employer member of controlled group.— “(A) In general.— In the case of a plan other than a multiemployer plan, if the employer referred to in paragraph (1) is a member of a controlled group, each member of such group shall be jointly and severally liable for the tax imposed by subsection (a) or (b). “(B) Controlled group.— For purposes of subparagraph (A), the term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.” (2) Technical amendments.— (A) Subsection (a) of section 4971 of the 1986 Code is amended by striking out the last sentence. (B) Subsection (b) of section 4971 of the 1986 Code is amended by striking out the last sentence. (b) Minimum Funding Contributions.— (1) Amendment to 1986 code.— Section 412(c) of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(11) Liability for contributions.— “(A) In general.— Except as provided in subparagraph (B), the amount of any contribution required by this section and any required installments under subsection (m) shall be paid by the employer responsible for contributing to or under the plan the amount described in subsection (b)(3)(A). “(B) Joint and several liability where employer member of controlled group.— “(i) In general.— In the case of a plan other than a multiemployer plan, if the employer referred to in subparagraph (A) is a member of a controlled group, each member of such group shall be jointly and sever101 STAT. 1330–352ally liable for payment of such contribution or required installment. “(ii) Controlled group.— For purposes of clause (i), the term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.” (2) Amendment to erisa.— Section 302(c) of ERISA (29 U.S.C. 1082(c)) is amended by adding at the end thereof the following new paragraph: “(11) Liability for contributions.— “(A) In general.— Except as provided in subparagraph (B), the amount of any contribution required by this section and any required installments under subsection (e) shall be paid by the employer responsible for contributing to or under the plan the amount described in subsection (b)(3)(A). “(B) Joint and several liability where employer member of controlled group.— “(i) In general.— In the case of a plan other than a multiemployer plan, if the employer referred to in subparagraph (A) is a member of a controlled group, each member of such group shall be jointly and severally liable for payment of such contribution or required installment, “(ii) Controlled group.— For purposes of clause (i), term ‘controlled group’ means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the Internal Revenue Code of 1986.”9898Indention on paragraphs “ ‘(11)”, “ ‘(A)”, “ ‘(B)”, “ ‘(i)”, and “ ‘(ii)”, incorrect. (c) Conforming Amendment.— Section 4140)) of the 1986 Code is amended by striking out “the minimum funding standard of section 412, the tax imposed by section 4971, and”. (d) Effective Date.— The amendments made by this section shall apply with respect to plan years beginning after December 31, 1987.