Which of the following is not correct regarding executive compensation at tax-exempt organizations?
A) If the IRs deems wages and benefits to be in excess of reasonable amounts, the IRs may impose sanctions on the individual receiving the benefits.
B) If the IRs deems wages and benefits to be in excess of reasonable amounts, the IRs may impose sanctions on the managers who approved the wages and benefits.
C) If the compensation is found to be unreasonable, the executive is required to pay back the amount of compensation deemed excessive plus a 10% penalty.
D) Benefits include salaries, deferred compensation, insurance, loans and medical benefits.

Question

Quizplus · Accepted Answer

While the IRS can impose sanctions on the individual receiving the excessive compensation (option A) and the managers who approved it (option B), the executive is not required to pay back the excessive compensation plus a penalty (option C). Benefits listed in option D are accurate.

Which of the Following Is Not Correct Regarding Executive Compensation