Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unreasonable executive compensation paid to executives of 501(c)(3) organizations is an area of concern for the IRS. Which of the ollowing is a sanction available

image text in transcribed
Unreasonable executive compensation paid to executives of 501(c)(3) organizations is an area of concern for the IRS. Which of the ollowing is a sanction available to the IRS? Multiple Choice If the executive receiving the excess benefits fails to repay the amount in a timely manner, an additional tax equal to 100 percent may be imposed. In the event compensation is found to be unreasonable, the executive is required to pay back the excess benefit to the tax-exempt organization plus a penalty of 25% of the excess benefit on the individual receiving the compensation and a penalty of 10 percent on the individuals responsible for approving it. Revoke the organization's 501(c)(3) status. C) In the event compensation is found to be unreasonable, the organization will receive a penalty equal to 200% of the excess compensation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: William Messier, Steven Glover, Douglas Prawitt

6th International Edition

0071284664, 978-0071284660

More Books

Students also viewed these Accounting questions