Engaging in a Prohibited Transaction Can Result in an Exempt

question 6

True/False

Engaging in a prohibited transaction can result in an exempt organization being subject to Federal income tax, but cannot cause it to lose its exempt status unless the exempt organization repeats the prohibited transaction.

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Definitions:

Discrediting

The process of causing someone or something to lose respect or the belief in their credibility.

Bad

A general term describing something that is considered undesirable, harmful, or morally wrong.

Conservative

A political and social ideology emphasizing traditional values, limited government, and resistance to rapid change.

Middle-class

A social class typically characterized by moderate income levels, educational attainment, and occupational status, situated between the lower and upper classes.