May 15th, 2012 | Comments Off on Current IRS Concerns for Exempt Organizations: Excess Benefit Questions

The Director of Exempt Organizations for the IRS, in a recent speech, revealed several matters of concern for the Service.

Third, the Service continues to review excess benefits issues in Schedule “O”. Excess benefits to insiders of the organization can lead to excessive penalties. The IRS wants to know what internal controls or good governance practices were present before the excess benefits transactions took place and if such practices were modified to make sure that the organization’s assets would be protected in the future