Join,Inc ,A § 501(c)(3)exempt Organization,engages in an Excess Benefit Transaction

question 88

Essay

Join,Inc. ,a § 501(c)(3)exempt organization,engages in an excess benefit transaction.The amount of the excess benefit is $200,000.Calculate the amount of the excise tax (first-level tax)imposed under the intermediate sanctions provision.

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Definitions:

Managing Partner

The partner in a law firm who makes decisions relating to the firm’s policies and procedures and who generally oversees the business operations of the firm.

Business Operations

Activities involved in the day-to-day functions of a business related to producing and delivering its products or services.

Policies

Directives or rules that guide actions and decision-making within organizations to achieve rational outcomes.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.