The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

CHAPTER TWENTY-ONE

Intermediate Sanctions

§ 21.2 Tax-Exempt Organizations

*§ 21.3 Disqualified Persons

§ 21.4 Transactions Involved

(a) General Rules

(f) Scholarships and Similar Grants

§ 21.6 Intermediaries

§ 21.7 For the Use of Transactions

§ 21.13 Indemnification and Insurance

*§ 21.17 College and University Compliance Project (New)

§ 21.2 TAX-EXEMPT ORGANIZATIONS INVOLVED

p. 549, second complete paragraph. Insert as last sentence:

Presumably this approach also is taken in connection with qualified exempt health insurance issuers.

§ 21.3 DISQUALIFIED PERSONS

p. 550, n. 25. Delete second sentence and substitute:

This limitation for 2014 is $115,000 (IR-2013-86).

*p. 550, n. 26. Insert following existing text:

The IRS ruled that a physician, paid by a tax-exempt health care network on the basis of a fixed salary plus compensation based on productivity (and, due to his hard work, was the highest-paid individual at the facility), was not a disqualified person with respect to the network because he was not in a position to exercise substantial influence over the affairs of the network or any of its affiliated applicable tax-exempt organizations (Priv. Ltr. Rul. 201336020).

§ 21.4 TRANSACTIONS INVOLVED

(a) General Rules

p. 552, first paragraph, ninth line. Insert federal income before tax.

p. 552, second paragraph. Insert as second sentence:

(As to the former, however, some of the criteria are provided in connection with the rebuttable presumption of reasonableness.^38.1)

p. 552, n. ...