Whenever a private foundation makes a sec?tion 507(b)(2) transfer of all or part of its net assets to another private foundation, the appli?cable time period described in excess business holdings will include the respective holding periods of both the transferor and the transferee. Except as oth?erwise provided in transfer to an effectively con?trolled foundation, the provisions relating to taxable expenditures will not apply to the transferee or to the trans?feror for any expenditure responsibility grants made by the transferor during any period in which the transferor has no assets. However, the information reporting requirements ?relating to taxable expenditures remain in effect.
