The Internal Revenue Service May Impose Intermediate Sanctions on All

question 27

Multiple Choice

The Internal Revenue Service may impose intermediate sanctions on all of the following transactions between a not-for-profit organization and its executive officer except:

• A) Excessive compensation.
• B) More than the fair rental value for property owned by the officer.
• C) A bargain on the sale of assets.
• D) Fringe benefits comparable to those given to all employees.

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Definitions:

Mortuary

A facility where the bodies of deceased persons are prepared for burial or cremation and where funerals might be conducted.

Legal Capacity

Legal capacity is the ability of an individual or entity to enter into legally binding contracts, sue or be sued, and make decisions that carry legal consequences.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and other operational details among partners in a business venture.

Minor Partner

A partner in a business who has not reached the age of majority, limiting their legal capacity and liabilities within the partnership.