In 1996, long before corporate governance was the buzzword in the for profit world, Section 4958 was added to the Internal Revenue Code by The Taxpayer Bill of Rights II. Section 4958 contains several "intermediate sanctions" that pose concerns for tax-exempt organizations. These intermediate sanctions provided the Internal Revenue Services...
Increased IRS Scrutiny of Excess-Benefit Transactions The IRS has stepped up its scrutiny of compensation packages and employee benefits in tax-exempt organizations and is using IRC section 4958 to sanction "disqualified persons" and organizational managers, rather than the organizations, for excess-benefit transactions. In 2002, the IRS issued...
The IRS has issued a proposed rule, published in the Sept. 9 Federal Register, that would amend the regulations under the Internal Revenue Code section 501c(3) to provide guidance on factors that the IRS will consider in determining whether a tax-exempt organization that engages in one or more excess benefit...
IRS Cites Insufficient Documentation as a Major Factor in Imposing Excise Taxes For Excess Benefit Transactions In five separate technical advice memoranda TAMs, the Internal Revenue Service imposed excise taxes on five disqualified individuals of the same tax-exempt religious organization.1 Each individual was found to have received...
Benchmarking data collected by ASAE from more than 750 nonprofit organizations in fall 2002 indicate that 14 percent of CEOs with written contracts are contractually required to justify compensation based on comparable salary and benefits data. The data suggest that this requirement is related to an...
Comments Requested on Possible Amendments to Regulations Governing Chapter 42 Excise Taxes The purpose of this announcement is to solicit comments addressing whether several regulations under Chapter 42 should be revised with respect to excise taxes imposed on foundation and organization managers to conform to recently-- issued final regulations...
2002. 2v. $150 hc. The Gale Group. 0-7876-4958-9. Grade 9 & Up Given the current flurry of debate about cloning, stem cell research, the human genome project, and other topics of genetic research, students are become increasingly aware of, and interested in, all...
Excise Taxes on Excess Benefit Transactions; Correction AGENCY: Internal Revenue Service IRS, Treasury. ACTION: Correction to final regulations. SUMMARY: This document contains corrections to final regulations (T.D. 8978, 2002-7 LR.B. 500) that were published in the Federal Register on Wednesday, January 23, 2002 (67 FR 3076) relating...
Final IRS Intermediate Sanctions Regulations: Few Surprises The Internal Revenue Service ("IRS") issued final intermediate sanctions regulations on January 23, 2002. The new regulations, which replace temporary regulations issued in 2001, contain few surprises and reflect only minor changes from last year's temporary rules. Like the temporary...
DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 53, 301, and 602 Excise Taxes on Excess Benefit Transactions AGENCY: Internal Revenue Service IRS, Treasury ACTION: Final regulations and removal of temporary regulations. SUMMARY: This document contains final regulations relating to the excise taxes...
Running afoul of intermediate sanctions As competition to attract and retain top-notch executives and fundraisers heats up, more nonprofits are offering salary and benefit packages approaching levels once found only in the private sector. Section 4958 of the Internal Revenue Code, a.k.a. the...
Does the IRS think you're overpaid? Do you consider yourself overpaid? What about the other officers in your organization? Probably nobody would answer these questions affirmatively. However, on January 10 of this year, the International Revenue Service issued new...
FREMONT, CALIF. -- New United Motor Manufacturing Inc. has pushed operating parameters on three 2,860-ton Ube injection presses to achieve significant cycle-time reductions in molding car bumpers. "We basically reduced cycle times on bumpers from 70 seconds down to a range of 49-58 seconds,"...
Exempt organization insiders may be liable for excise taxes if they receive excess financial benefits from the organizations they serve. The issuance last year of proposed regulations under [sections]4958 of the Internal Revenue Code is considered by many to be the most important development in the law of...
On July 30, 1998, the Department of Treasury published proposed regulations for Section 4958 of the Internal Revenue Code to enforce a provision of the Taxpayers Bill of Rights 2. The statute and regulations are designed to discourage excess benefit transactions between tax-exempt organizations and certain individuals, termed "disqualified persons,"...
The Taxpayers Bill of Rights 2 introduces Section 4958, "Taxes on Excess Benefit Transactions," to the Internal Revenue Code. 'In general, this section imposes a penalty excise tax as an intermediate sanction when a not-for-profit 501c(3) healthcare organization or a 501c(4) tax-exempt HMO engages in an "excess benefit transaction."a The...
Congress is using Section 4958 of the Internal Revenue Code to penalize transactions between disqualified persons and tax-exempt organizations that result in excess benefit for the receiving party. Intermediate sanctions rather than punishments will be imposed upon both parties for all excess benefit transactions, which include all transactions wherein the...
Articles 1996-12-02
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