### Question
How does Tax Shelter Transactions define tax-exempt entity?


### Answer
Under *26 U.S.C. § 4965*, **tax-exempt entity** is defined as:

> an entity which is—


(1) described in section 501(c) or 501(d),


(2) described in section 170(c) (other than the United States),


(3) an Indian tribal government (within the meaning of section 7701(a)(40)),


(4) described in paragraph (1), (2), or (3) of section 4979(e),


(5) a program described in section 529,


(6) an eligible deferred compensation plan described in section 457(b) which is maintained by an employer described in section 4457(e)(1)(A), or


(7) an arrangement described in section 4973(a)

#### Citation:
  - *26 U.S.C. § 4965*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter F-Tax Shelter Transactions**

