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:

Past

The time before the present, including all events, periods, and experiences that have occurred.

Quiet

The absence of loud sound; a state or condition of little or no noise.

Raised

To lift or move something to a higher position or level; also refers to bringing up or nurturing something.

Know

To be aware of through observation, inquiry, or information; to have knowledge or understanding of something.