Teal, Inc., is a private foundation that failed to distribute an adequate amount of income for the exempt purpose of Teal. Which of the following statements is correct?
A) An excise tax in the form of an initial tax at the rate of 10% may be imposed on Teal.
B) An excise tax in the form of an initial tax at the rate of 5% may be imposed on the foundation manager.
C) An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal.
D) An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager.

Question

Quizplus · Accepted Answer

The Answer of Teal, Inc., is a private foundation that failed to distribute an adequate amount of income for the exempt purpose of Teal. Which of the following statements is correct?
A) An excise tax in the form of an initial tax at the rate of 10% may be imposed on Teal.
B) An excise tax in the form of an initial tax at the rate of 5% may be imposed on the foundation manager.
C) An excise tax in the form of an additional tax at the rate of 100% may be imposed on Teal.
D) An excise tax in the form of an additional tax at the rate of 50% may be imposed on the foundation manager.

Teal, Inc, Is a Private Foundation That Failed to Distribute an an Adequate