Not For Profit/Exempt Organizations Blog

Tag Archives: intermediate sanctions

IRS Warns that Fringe Benefits Trigger Intermediate Sanctions

At a recent conference on nonprofit governance sponsored by Georgetown Law Center, an IRS official stated that fringe benefits have become the most common trigger of intermediate sanctions under Section 4958 of the Code.  As most of you know, or should know, Section 4958 of the Code, enacted in 1996, imposes excise taxes on both … Continue Reading

Charity Loses Tax Exemption Because of Private Inurement – Is Your Charity Immune?

In PLR 20113041, the IRS revoked the tax exemption of a public charity based on excess benefit and private inurement issues revealed during the course of its examination. This ruling highlights practices that charities should avoid in order to maintain their tax-exempt status. This ruling also confirms that the IRS is paying close attention to what charities are doing in their "back" offices. … Continue Reading