Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: $fill in the blank 1 On Davis: $fill in the blank 2. b. A second-level tax in the amount of $fill in the blank 3 is imposed on Davis.

Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: $fill in the blank 1 On Davis: $fill in the blank 2. b. A second-level tax in the amount of $fill in the blank 3 is imposed on Davis.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter23: Exempt Entities

Section: Chapter Questions

Problem 13CE

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Question

Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $70,600. Davis does not pay back the excess benefits to the organization before the first-level tax is due.

a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows:

On the exempt organization management: $fill in the blank 1

On Davis: $fill in the blank 2.

b. A second-level tax in the amount of $fill in the blank 3 is imposed on Davis.

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