§1074

105-34, § 1074(a), 111 Stat. 788, 949. 5 The Third Circuit also noted that a section 4975 liability (like other taxes) is “self-assessed”—i.e., required to be reported on a return filed by the taxpayer— whereas “penalties” are determined by the Commissioner during an examination. See Latterman, 872 F.2d at 566–69. The same is true for section 4973 liabilit

tax rate increased from 5 percent to 10 percent). - 12 - For prohibited transactions occurring after August 5, 1997, the rate of the first-tier tax is 15 percent. See sec. 4975(a) after amendment by the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec. 1074, 111 Stat. 949 (first-tier tax rate increased from 10 percent to 15 percent). The second-tier excise tax, equal to 100 percent of the “amount involved”, is imposed when a transaction to which the first-tier tax applies is not corrected withi