Which of the following are available options for the IRS in dealing with an exempt organization entering into prohibited transactions?
A) Attempt to subject all or part of the organization's income to Federal income tax.
B) Revoke the exempt status of the organization.
C) Impose intermediate sanctions in the form of excise taxes.
D) Only a. and b.
E) a., b., and c.

Question

Quizplus · Accepted Answer

The IRS has the option to attempt to subject all or part of the organization's income to Federal income tax, revoke the exempt status of the organization, or impose intermediate sanctions in the form of excise taxes. All three options are available to the IRS in dealing with an exempt organization entering into prohibited transactions.

Which of the Following Are Available Options for the IRS