Engaging in a Prohibited Transaction Can Result in an Exempt

question 6

True/False

Engaging in a prohibited transaction can result in an exempt organization being subject to Federal income tax, but cannot cause it to lose its exempt status unless the exempt organization repeats the prohibited transaction.

---

Definitions:

Truth-wins Rule

A principle in group decision-making where the best argument or evidence available overwhelmingly persuades the group, leading to a consensus.

Majority-wins Rule

A decision-making strategy where the option chosen by the majority of participants is selected.

First-shift Rule

A principle or guideline that gives priority or preference to tasks or activities performed during the first part of the workday.

Group Decision Making

The process where a group of individuals come together to make a decision, often involving debate, discussion, or consensus-building.