Explanation Excessive benefits: The excessive benefits refer to the unreasonable amount or deal received by a not for profit organization officer when compared to a similar transaction by those in comparable position. For example, an officer purchasing an article at bargain price while the other officers are not allowed to do so. The act of willing giving or receiving excessive benefits shall result in Intermediate sanctions. The Intermediate sanctions shall require a tax assessment on the excessive benefit transaction under the IRC Sec.4958. The not for profit organization is levied a penalty of 10% for such transactions whereas the individuals getting the benefits from the excessive benefits are charged 25% penalty. This may increase if the excessive benefits are not rectified. The transactions subject and not subject to intermediate sanctions are given below: Activities Subject to intermediate sanctions Not Subject to intermediate sanctions 1...

Fir the given transactions indicate if the not for profit organization is at risk of getting intermediate sanctions.

ACCT. F/GOVT.&NONPROFIT(LL)W/ACCESS >BI

18th Edition

ISBN: 9781260839494

Author: RECK

Publisher: MCG

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Chapter 13, Problem 21EP

To determine

Fir the given transactions indicate if the not for profit organization is at risk of getting intermediate sanctions.

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Chapter 13, Problem 20EP

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