Hidden Bibliographic Details
| Other authors / contributors: | Tax Management Inc.
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| Frequency: | Updated irregularly
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| Notes: | Formerly published in Washington, D.C., 2002-2007.
Published as Tax Management Estates, Gifts and Trusts portfolio 884, -2013.
Title from title screen (viewed Mar. 13, 2013).
Includes bibliographical references.
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| Summary: | " ... discusses in detail the applicable sanctions that, under [section] 4958, may be imposed on so-called "excess benefit transactions" involving [section] 501(c)(3) public charities, [section] 501(c)(4) organizations, and their insiders. Enacted in 1996 by the Taxpayer Bill of Rights 2, [section] 4958 was added to the Internal Revenue Code to provide the IRS with a tool to penalize insiders of [section] 501(c)(3) public charities and [section] 501(c)(4) organizations who receive excess compensation or engage in unfair business transactions with the organizations, as well as managers who knowingly approve such arrangements. Section 4958 imposes an excise tax on a "disqualified person"--A person with substantial control over the organization -- who receives excessive economic benefit from the organization, as well as on the organization manager(s) who approves the benefit knowing it to be excessive. The IRS may choose to invoke these penalties on the disqualified person as an alternative to revoking the organization's tax exemption, hence the term "intermediate sanctions" to describe this new penalty regime. Amendments made by the Pension Protection Act of 2006 extended the intermediate sanctions penalty system to certain transactions involving donor advised funds and supporting organizations and their substantial contributors, even when there is no "excess" benefit."
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| Other form: | Print version: Roady, Celia, 1951- Intermediate sanctions. Arlington, Va. : Tax Management Inc., ©2013- 9781617468117
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