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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.


Definitions:

Atrial Septal Defect

A congenital heart defect characterized by an opening in the atrial septum, allowing blood to flow between the two atria, which can affect blood circulation.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21.

Congenital Heart Defects

Heart abnormalities that are present at birth, affecting the structure and function of the heart.

Amniocentesis

A medical procedure involving the extraction of a small amount of amniotic fluid for testing, typically to diagnose genetic disorders in a fetus.

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