Which of the Following Are Available Options for the IRS

question 136

Multiple Choice

Which of the following are available options for the IRS in dealing with an exempt organization entering into prohibited transactions?

• A)Attempt to subject all or part of the organization's income to Federal income tax.
• B)Revoke the exempt status of the organization.
• C)Impose intermediate sanctions in the form of threatened loss of exempt status.
• D)Only a.and b.
• E)a., b., and c.

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Definitions:

Complements

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Negative

Characterized by lack or absence, often used in contexts such as negative growth (decline) or negative feedback (criticism).

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Quantity Demanded

The amount of a good or service that consumers are willing to buy at a specific price, at a given time.