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Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition 2019 Cumulative Supplement, 5th Edition
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Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition 2019 Cumulative Supplement, 5th Edition

by Jody Blazek
March 2019
Intermediate to advanced content levelIntermediate to advanced
272 pages
7h 58m
English
Wiley
Content preview from Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition 2019 Cumulative Supplement, 5th Edition

CHAPTER 20Private Inurement and Intermediate Sanctions

  1. § 20.1  Defining Inurement
    1. (a) Persons Involved
    2. (d) Economic Substance
  2. § 20.2  Salaries and Other Compensation
  3. § 20.4  Finding Salary Statistics
  4. § 20.8  Services Rendered for Individuals
    1. (b) When Private Benefit Is Found
  5. § 20.10 Intermediate Sanctions
    1. *(e) Proving Reasonableness
    2. (h) Paying the § 4958 Excise Tax
    3. *(j) Excessive Compensation

p. 588. Add after second paragraph of introduction:

In recent years, the IRS has denied exemption to organizations with a limited number of board members, particularly if they are related. Also troublesome to them is too close a relationship between the planned activities and a business or activity owned by the organization's creators. The examples and concepts presented in this chapter should be considered in view of the ever expanding private letter rulings that deny exemption because of what they identify as private benefit or inurement, such as an organization intending to educate, empower, and engage individuals in daily life skills,1 and one performing scientific research to help a founder transform his ideas into marketable inventions, or conducting a program to train medical personnel.2

p. 588. Add after third paragraph:

Private benefit was found to accrue to parents of cheerleaders. The members of the organization volunteer their time to operate concession stands at school events to pay for tuition, books, and apparel for their children. The fact that the receipts were allocated ...

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Publisher Resources

ISBN: 9781119538196Purchase book