Insights
Client Alert
IRS Issues New Intermediate Sanctions Rules
January 01, 2001
By Paul Hastings Professional
In 1996, Congress created an "intermediate sanctions" excise tax imposed on persons receiving excess benefits in transactions with tax-exempt organizations. The IRS has now issued new regulations which became effective January 10, 2001. For the most part, the Regulations are consistent with regulations proposed in 1998. However, they provide helpful new guidance in a number of important areas.