Which of the following excise taxes are imposed on the private foundation because it engages in prohibited transactions?
A)Tax on investment income.
B)Tax on self-dealing.
C)Tax on failure to distribute income.
D)Only b.and c.
E)a., b., and c.

Question

Quizplus · Accepted Answer

The excise taxes that are imposed on private foundations for engaging in prohibited transactions are the taxes on self-dealing and failure to distribute income. Therefore, only options B and C are correct. The tax on investment income is imposed on all private foundations regardless of their transactions. Therefore, option A is incorrect. Option E includes all three taxes, which is not fully correct.

Which of the Following Excise Taxes Are Imposed on the Private