The Internal Revenue Service may impose intermediate sanctions on all of the following transactions between a not-for-profit organization and its executive officer except:
A) Excessive compensation.
B) More than the fair rental value for property owned by the officer.
C) A bargain on the sale of assets.
D) Fringe benefits comparable to those given to all employees.

Question

Quizplus · Accepted Answer

Fringe benefits comparable to those given to all employees are generally permitted and not subject to intermediate sanctions. A, B, and C are all potential transactions that can result in intermediate sanctions if they are deemed excessive or not at fair market value.

The Internal Revenue Service May Impose Intermediate Sanctions on All