Which of the Following Are Available Options for the IRS

question 153

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 excise taxes.
• D) Only a. and b.
• E) a., b., and c.

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Definitions:

Portable

Capable of being easily carried or moved, especially in reference to electronic devices or equipment.

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to design a benefits package that best suits their needs.

High Deductible

Refers to a health insurance policy with a higher deductible amount, requiring the insured to pay more out-of-pocket costs before the insurance starts covering medical expenses.