Preface.
Prologue.
Chapter 1: Basics and History of Intermediate Sanctions Law.
? 1.1 Intermediate Sanctions Law Basics.
(a) Meaning of Intermediate Sanctions.
(b) Nature of the Sanctions.
(c) Fundamental Terminology.
? 1.2 History of Intermediate Sanctions.
(a) General History.
(b) Accompanying Regulations.
(c) Effective Dates.
? 1.3 Applicable Tax-Exempt Organizations.
? 1.4 Interrelationship with Other Law.
? 1.5 Commentary on Intermediate Sanctions.
Chapter 2: Private Inurement and Private Benefit Doctrines.
? 2.1 Essence of Private Inurement.
? 2.2 Concept of Net Earnings.
? 2.3 Requisite Insider.
? 2.4 Types of Private Inurement.
(a) Compensation for Services.
(b) Rental Arrangements.
(c) Loans.
(d) Sales of Assets.
(e) Equity Distributions.
(f ) Assumptions of Liability.
(g) Employee Benefits.
(h) Tax Avoidance Schemes.
(i) Services Rendered.
(j ) Provision of Goods or Refreshments.
(k) Retained Interests.
(l) Embezzlements.
? 2.5 Social Welfare Organizations.
? 2.6 Per Se Private Inurement.
? 2.7 Incidental Private Inurement.
? 2.8 Private Benefit Doctrine.
(a) General Rules.
(b) Import of Joint Venture Cases.
(c) Perspective.
(d) Private Benefit: In the Background as Well as the Foreground.
Chapter 3: Disqualified Persons.
? 3.1 Concept of Disqualified Person.
? 3.2 Directors and Trustees.
? 3.3 Officers.
? 3.4 Key Employees.
? 3.5 Facts and Circumstances Test.
(a) Facts and Circumstances Showing Influence.
(b) Facts and Circumstances Showing Little Influence.
? 3.6 Family Members.
? 3.7 Controlled Entities.
? 3.8 Vendors of Products or Services.
? 3.9 Nondisqualified Persons.
? 3.10 Donor-Advised Funds.
? 3.11 Other Rules.
Chapter 4: Excess Benefit Transactions.
? 4.1 Concept of Excess Benefit Transaction.
(a) Excess Benefit Transaction Defined.
(b) Consideration.
(c) Indirect Excess Benefit Transactions.
(d) Element of Knowledge.
? 4.2 Controlled Entities.
? 4.3 Intermediaries.
? 4.4 Initial Contract Exception.
(a) History of Exception.
(b) Fixed Payments.
(c) Initial Contracts.
(d) New Contracts.
? 4.5 Valuation Standards.
(a) Valuation of Property.
(b) Valuation of Services.
? 4.6 Compensation Arrangements.
(a) Meaning of Compensation.
(b) Ascertaining the Reasonableness of Compensation.
(c) Timing of Reasonableness of Compensation.
(d) Intent to Treat Benefit as Compensation.
? 4.7 Other Transactions.
(a) Lending Transactions.
(b) Rental Transactions.
(c) Sales transactions.
? 4.8 For the Use of Transactions.
? 4.9 Revenue-Sharing Transactions.
(a) Definition of Revenue-Sharing Transaction.
(b) Overview of Legislative History.
(c) Profit-Sharing Plans.
(d) Percentage-Based Compensation.
(e) Proposed Regulations.
(f ) Revenue-Sharing in the Fundraising Context.
? 4.10 Disregarded Economic Benefits.
Chapter 5: Rebuttable Presumption of Reasonableness.
? 5.1 Concept of Rebuttable Presumption.
(a) Presumptions Generally.
(b) Intermediate Sanctions Rebuttable Presumption.
? 5.2 Authorized Bodies.
? 5.3 Conflicts of Interest.
? 5.4 Appropriate Data.
(a) Knowledge and Expertise of Members.
(b) Relevant Information.
(c) Special Rules for Small Organizations.
? 5.5 Documentation.
(a) General Rules.
(b) Rules as to Fixed and Nonfixed Payments.
(c) Absence of Inference.
? 5.6 Rebutting the Presumption.
? 5.7 Impact of Presumption.
Chapter 6: Applicability of Intermediate Sanctions.
? 6.1 Excess Benefit.
? 6.2 Initial Tax.
? 6.3 Additional Tax.
(a) General Rules.
(b) Taxable Period.
? 6.4 Correction.
(a) Concept of Correction.
(b) Forms of Correction.
(c) Correction Amount.
? 6.5 Tax on Organization Managers.
(a) Definition of Organization Manager.
(b) Certain Committee Members.
(c) General Rules.
(d) Definition of Participation.
(e) Definition of Knowing.
(f ) Reliance on Professional Advice.
(g) Definition of Willful.
(h) Definition of Occurrence.
? 6.6 Abatement.
(a) Initial Tax.
(b) Additional Tax.
? 6.7 Period of Limitations.
? 6.8 Revocation of Tax Exemption.
(a) General Rules.
(b) Private Inurement and Intermediate Sanctions.
(c) Commentary.
? 6.9 Reporting Requirements.
? 6.10 Deductibility of Taxes and Correction Amounts.
? 6.11 Reimbursements and Insurance.
Epilogue.
Appendix A: Intermediate Sanctions Rules Executive Summary.
Appendix B: Intermediate Sanctions Law.
Appendix C: Intermediate Sanctions Legislative History.
Appendix D: History of Intermediate Sanctions.
Appendix E: Frequently Asked Questions About the Intermediate Sanctions Rules.
Appendix F: An Introduction to I.R.C. 4958 (Prepared by the IRS).
Appendix G: IRS Summary of Fringe Benefits.
Appendix H: Planning for Compliance.
Appendix I: Afterthoughts.
Table of Cases.
Table of IRS Revenue Rulings and Procedures.
Table of IRS Private Rulings.
Glossary.
Selected Bibliography.
Index.
