Teal, Inc, Is a Private Foundation Which Failed to Distribute an an Adequate

question 20

Multiple Choice

Teal, Inc., is a private foundation which failed to distribute an adequate amount of income for the exempt purpose of Teal. Which of the following statements is correct?

• A) An excise tax in the form of an initial tax at the rate of 10% may be imposed on Teal.
• B) An excise tax in the form of an initial tax at the rate of 5% may be imposed on the foundation manager.
• C) An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal.
• D) An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager.

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