Web§53.4958–3 Definition of disqualified person. (a) In general—(1) Scope of definition. Section 4958(f)(1) defines disqualified person, with respect to any transaction, WReier-Aviles on DSKGBLS3C1PROD with CFR VerDate Mar<15>2010 10:26 May 04, 2011 Jkt 223100 PO 00000 Frm 00227 Fmt 8010 Sfmt 8010 Y:\SGML\223100.XXX 223100 WebNov 10, 2012 · In any case in which an initial tax is imposed by subsection (a) (1) on an act of self-dealing by a disqualified person with a private foundation and the act is not corrected within the taxable period, there is hereby imposed …
IRC Section 4958 — A Big Hammer in the IRS Toolbox
WebSection 4958 was enacted in section 1311 of the Taxpayer Bill of Rights 2. Section 4958 generally is effective for transactions occurring on or after September 14, 1995. Section 4958 imposes excise taxes on transactions that provide excess economic benefits to disqualified persons of public charities and social welfare organizations. WebIRC section 4958 (f) (1) and Treasury Regulations section 53.4958-3 (a) (1) define “disqualified person” as anyone in a position to exercise substantial influence over the organization’s affairs at any time during the five-year period preceding the date of the excess-benefit transaction. rabun county ga property records
Sec. 4958. Taxes On Excess Benefit Transactions
WebFeb 25, 2024 · (See Treas. Reg. 53.4958-6(a).) In late 2024, the IRS implemented Internal Revenue Code section 4960, imposing an excise tax on bright-line criteria. Even if the compensation at issue is “reasonable” under the circumstances, under section 4960, the IRS imposes a 21% excess tax on “covered” nonprofit employee compensation that exceeds … WebThe President is liable for the 25% excise tax under IRC 4958(a)(1) and the 200% excise tax under IRC 4958(b). If the President satisfied the requirements under IRC 4961 and IRC 4962, which includes correction of the excess benefit transaction, abatement of some or all of these taxes may occur. WebJun 7, 2024 · IRC Section 4958 defines an excess benefit transaction as any transaction in which the value of the economic benefit provided by the tax-exempt organization to a disqualified person exceeds the fair market value of the consideration received by the organization in return. Determining Excess Benefit Transactions shock o lat sunflower