Engaging in a Prohibited Transaction Can Result in an Exempt

question 19

True/False

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

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Definitions:

Organizational Concept

A fundamental idea or theory that forms the foundation for designing, operating, and understanding an organization's structure, culture, and processes.

Organizational Language

Words or metaphors and expressions specific to an organization.

Meeting Spaces

Designated areas or rooms reserved for gatherings, conferences, or discussions among members of an organization or group.

Artifact

An object made by a human being, typically one of cultural or historical interest.