If a tax-exempt organization is found by the IRS to have paid unreasonable benefits, the individual must pay a tax penalty of 25% of the excess benefit and the individuals who approved the benefits must pay a 10% penalty.
Answer the following statement true (T) or false (F)
True
If executive compensation is found to be unreasonable, the executive is required to pay back the excess benefit to the tax-exempt organization. In addition, there is a tax penalty of 25 percent of the excess benefit on the individual receiving the compensation and a penalty of 10 percent on the individuals responsible for approving the compensation. If the executive receiving the excess benefits fails to repay the amount in a timely manner, an additional tax equal to 200 percent may be imposed by the IRS.
You might also like to view...
Continuous scales can be used efficiently in social media
Indicate whether the statement is true or false
Time management refers to techniques that ______.
a. help people become more punctual b. enable people to get more done in less time c. improve the capability of handling more than one task d. eliminate stressors on the job
According to chapter 5 of your text book, corruption in Barings Bank, Enron, and WorldCom are illustrations that a strong culture is not necessarily a _________ culture.
a. Functional b. Corrupt c. Trustworthy d. Good
John Rodriques, a landlord, knowingly put a dangerous high level of chlorine in the pool in his apartment building to discourage use of it. Anna, a tenant, became ill as a result. Which of the following is TRUE? The landlord has
A) committed the tort of battery. B) not committed the tort of battery because he didn't touch the tenant. C) committed the tort of negligence. D) committed the tort of assault E) not committed any tort. He is exercising his property rights.