### Question
How does EXEMPT ORGANIZATIONS define prohibited reportable transaction?


### Answer
Under *26 U.S.C. § 4965*, **prohibited reportable transaction** is defined as:

> any confidential transaction or any transaction with contractual protection (as defined under regulations prescribed by the Secretary) which is a reportable transaction (as defined in section 6707A(c)(1))

#### 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**

