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  • Publication 5835 (Rev. 2-2024) - Internal Revenue Service
    Background History Section 4958 was added to the Internal Revenue Code (Code) by Section 1311 of the Taxpayer Bill of Rights 2, P L 104-168 (110 Stat 1452), enacted July 30, 1996 It generally applies to excess benefit transactions occurring on or after September 14, 1995 See P L 104-168, Section 1311(d)(1) and Treasury Regulation (Treas Reg ) 53 4958-1(f)(1) Prior to the enactment of
  • Intermediate sanctions - Excess benefit transactions
    Section 4958 applies to all excess benefit transactions occurring on or after September 14, 1995 However, Section 4958 does not apply to excess benefit transactions that occurred under a written contract, if the contract was binding on September 13, 1995 and at all times thereafter before the excess benefit transaction occurred
  • Intermediate sanctions - Internal Revenue Service
    Intermediate sanctions Excise tax on excess benefit transactions Section 4958 of the Internal Revenue Code imposes an excise tax on excess benefit transactions between a disqualified person and an applicable tax-exempt organization The disqualified person who benefits from an excess benefit transaction is liable for the excise tax
  • Automatic Excess Benefit Transactions Under IRC 4958
    IRC 4958(c)(1); Reg 53 4958-4 The President is liable for the 25% excise tax under IRC 4958(a)(1) and the 200% excise tax under IRC 4958(b) If the President satisfied the requirements under IRC 4961 and IRC 4962, which includes correction of the excess benefit transaction, abatement of some or all of these taxes may occur
  • B. SECTION 4958 UPDATE - Internal Revenue Service
    IRC 4958 imposes excise taxes on excess benefit transactions between disqualified persons and IRC 501(c)(3) or 501(c)(4) organizations The excise tax, which is paid by the disqualified person, is imposed on the amount received by the disqualified person that exceeds the value of consideration provided to the organization
  • H. AN INTRODUCTION TO I. R. C. 4958 (INTERMEDIATE SANCTIONS)
    Introduction On January 10, 2001, the Treasury Department issued temporary regulations under I R C 4958, which imposes excess taxes on excess benefit transactions involving organizations exempt under I R C 501(c)(3) and 501(c)(4) These regulations are important to the exempt organization community and to the Exempt Organization Division of the Tax Exempt and Government Entities (TE GE
  • FINAL TAM-Sanitized - David Linderman
    Section 4958(b) of the Code imposes an additional tax on the disqualified person in any case in which an initial tax is imposed by subsection (a)(1) on an excess benefit transaction and the excess benefit involved in such transaction if not corrected within the taxable period, a tax equal to 200 percent of the excess benefit involved The tax imposed by this subsection shall be paid by any
  • Disqualified person - intermediate sanctions - Internal Revenue Service
    Meaning of disqualified person as used in Internal Revenue Code section 4958
  • Credit Counseling Organizations: A Service or A Scam
    Section 4958 imposes excise taxes on certain “insiders” of section 501(c)(3) and 501(c)(4) organizations who engage in excess benefit transactions with the organizations, and on organization managers who approve the transactions This article does not explain the provisions of section 4958; they are described in prior articles in the EO CPE Texts for 2000, 2002, and 2003
  • Intermediate Sanctions (IRC 4958) Update - Internal Revenue Service
    4958 excise taxes depends on the information return of the applicable tax-exempt organization (Form 990 or Form 990-EZ) for the period during which the excess benefit transaction occurred





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