Internal Revenue Code Section 4958
/ˌɪntərnl ˈrɛvəˌnu koʊd ˈsɛkʃən ˌfɔrnˈtaɪn faɪv eɪt/
Definitions
- (n.) A provision of U.S. tax law imposing excise taxes on excess benefit transactions between tax-exempt organizations and disqualified persons to prevent private inurement.
The nonprofit was assessed a penalty under Internal Revenue Code Section 4958 for an improper transaction favoring an insider.
Forms
- internal revenue code section 4958
Related terms
See also
Commentary
IRC § 4958 is critical in nonprofit tax law to deter insiders from receiving benefits beyond reasonable compensation; careful drafting of transactions can avoid triggering its penalties.
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