Multiple Choice Unreasonable executive compensation paid to executives of 501(c)(3) organizations is an area of concern for the IRS. Which of the following is a sanction available to the IRS? If the executive receiving the excess benefits fails to repay the amount in a timely manner, an additional tax equal to 100 percent may be imposed. In the event compensation is found to be unreasonable, the executive is required to pay back the excess benefit to the tax-exempt organization plus a penalty of 25% of the excess benefit on the individual receiving the compensation and a penalty of 10 percent on the individuals responsible for approving it. neip Revoke the organization's 501(c)(3) status. In the event compensation is found to be unreasonable, the organization will receive a penalty equal to 200% of the excess compensation. Save & Exit
Multiple Choice Unreasonable executive compensation paid to executives of 501(c)(3) organizations is an area of concern for the IRS. Which of the following is a sanction available to the IRS? If the executive receiving the excess benefits fails to repay the amount in a timely manner, an additional tax equal to 100 percent may be imposed. In the event compensation is found to be unreasonable, the executive is required to pay back the excess benefit to the tax-exempt organization plus a penalty of 25% of the excess benefit on the individual receiving the compensation and a penalty of 10 percent on the individuals responsible for approving it. neip Revoke the organization's 501(c)(3) status. In the event compensation is found to be unreasonable, the organization will receive a penalty equal to 200% of the excess compensation. Save & Exit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
3
Transcribed Image Text:Unreasonable executive compensation paid to executives of 501(c)(3) organizations is an area of concern for the IRS. Which of the
following is a sanction available to the IRS?
Multiple Choice
If the executive receiving the excess benefits fails to repay the amount in a timely manner, an additional tax equal
to 100 percent may be imposed.
In the event compensation is found to be unreasonable, the executive is required to pay back the excess benefit to
the tax-exempt organization plus a penalty of 25% of the excess benefit on the individual receiving the
compensation and a penalty of 10 percent on the individuals responsible for approving it.
Revoke the organization's 501(c)(3) status.
Save & Exit
In the event compensation is found to be unreasonable, the organization will receive a penalty equal to 200% of
the excess compensation.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education