Examples of Excess Benefit Transaction in a sentence
Excess Benefit Transaction means an “excess benefit transaction” as that term is defined in Section 4958(c) of the Internal Revenue Code, 26 U.S.C. § 4958(c).
Excess Benefit Transaction Excise Tax means any excise tax imposed by the Internal Revenue Service, pursuant to Section 4958(a)(2) of the Internal Revenue Code, 26 U.S.C. § 4958(a)(2), on an Insured Person who is an Organization Manager as a result of such Insured Person’s participation in an Excess Benefit Transaction.
For an explanation of the meaning of Excess Benefit Transaction and the Internal Revenue Service safe harbor approval procedures, please see Exhibit A.In addition to the prohibition on Excess Benefit Transactions, the Internal Revenue Code requires that the Foundation be operated exclusively for charitable purposes and as such any arrangement involving private inurement or private benefit is forbidden.
If, however, it is determined that the Possible Conflict of Interest would be an Excess Benefit Transaction, the terms of the proposed transaction must either be revised so as to not be an Excess Benefit Transaction, or the Corporation must not enter into the proposed transaction.
If the Possible Conflict of Interest involves a possible Excess Benefit Transaction with a Disqualified Person, the Board may, if appropriate, appoint a committee of disinterested individuals to act on behalf of the Board of Trustees to review, and possibly approve, the proposed transaction.