# Tenn. Code Ann. § 35-9-101: Prohibited acts

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-101

## Section

- **Citation:** Tenn. Code Ann. § 35-9-101
- **Heading:** Prohibited acts
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 35 / Chapter 9 / Section 35-9-101

## Text

In the administration of any trust that is a "private foundation," as defined in § 509 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 509 ), a "charitable trust," as defined in § 4947(a)(1) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(1) ), or a "split-interest trust," as defined in § 4947(a)(2) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(2) ), the following acts are prohibited: (1) Engaging in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(d) ), that would give rise to any liability for the tax imposed by § 4941(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(a) ); (2) Retaining any excess business holdings (as defined in § 4943(c) of the Internal Revenue Code of 1954 26 U.S.C. § 4943(c) ), that would give rise to any liability for the tax imposed by § 4943(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4943(a) ); (3) Making any investments that would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944 ), so as to give rise to any liability for the tax imposed by § 4944(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944(a) ); or (4) Making any taxable expenditures (as defined in § 4945(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(d) ), that would give rise to any liability for the tax imposed by § 4945(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(a) ); provided, that this section does not apply either to those split-interest trusts or to amounts of those split-interest trusts that are not subject to the prohibitions applicable to private foundations by reason of § 4947 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947 ). Acts 1971, ch. 3, § 1; T.C.A., § 35-1001.
In the administration of any trust that is a "private foundation," as defined in § 509 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 509 ), a "charitable trust," as defined in § 4947(a)(1) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(1) ), or a "split-interest trust," as defined in § 4947(a)(2) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(2) ), the following acts are prohibited:
(1) Engaging in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(d) ), that would give rise to any liability for the tax imposed by § 4941(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(a) );
(2) Retaining any excess business holdings (as defined in § 4943(c) of the Internal Revenue Code of 1954 26 U.S.C. § 4943(c) ), that would give rise to any liability for the tax imposed by § 4943(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4943(a) );
(3) Making any investments that would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944 ), so as to give rise to any liability for the tax imposed by § 4944(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944(a) ); or
(4) Making any taxable expenditures (as defined in § 4945(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(d) ), that would give rise to any liability for the tax imposed by § 4945(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(a) ); provided, that this section does not apply either to those split-interest trusts or to amounts of those split-interest trusts that are not subject to the prohibitions applicable to private foundations by reason of § 4947 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947 ).
Acts 1971, ch. 3, § 1; T.C.A., § 35-1001.

## Nearby sections

- [Tenn. Code Ann. § 35-9-101 Prohibited acts](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-101.md)
- [Tenn. Code Ann. § 35-9-102 Distribution of amounts to avoid tax liability](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-102.md)
- [Tenn. Code Ann. § 35-9-103 Applicability of Sections 35-9-101 and 35-9-102](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-103.md)
- [Tenn. Code Ann. § 35-9-104 Powers of courts and attorney general and reporter unimpaired](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-104.md)
- [Tenn. Code Ann. § 35-9-105 References to Internal Revenue Code](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-105.md)
- [Tenn. Code Ann. § 35-9-106 Authority to amend trust for tax benefits](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-106.md)
- [Tenn. Code Ann. § 35-9-107 Reformation of trusts to comply with tax regulations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-107.md)
- [Tenn. Code Ann. § 35-9-108 Information or actions that cannot be required](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-108.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C9_S35-9-101. Check the current official text before relying on it. Not legal advice.