The Excise Tax Imposed on a Private Foundation's Excess Business

question 134

True/False

The excise tax imposed on a private foundation's excess business holdings is in effect an audit fee to defray IRS expenses.

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Definitions:

Fixed Amount

A specific sum of money that does not change over time or with use, often referring to payments or charges.

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Clarity

The quality of being easily understood or free from ambiguity.

Order Instrument

A negotiable instrument that is payable “to the order of an identified person” or “to an identified person or order.”