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:

Disruptive Member

A member of a group whose actions negatively impact the group's dynamics, productivity, or overall functioning.

Autokinetic Effect

A visual phenomenon in which a stationary point of light in a dark room appears to move due to small involuntary eye movements.

Conforming Behavior

Actions that align with the norms, values, or expectations of a social group or society.

Group Norms

Accepted standards and expectations that are shared by a group and guide the behavior of its members.