Intermediate sanctions are often imposed by the Internal Revenue Service,in addition to revoking the tax-exempt status for organizations that confer excessive economic benefits on persons with substantial influence over the organization.

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Intermediate sanctions, introduced in 1996, are a tool the IRS may use in curbing excess benefit transactions favoring certain people related to an NPO so that the NPO does not have to lose its tax-exempt status. Loss of tax-exempt status is considered unduly harsh, but the only sanction that the IRS had before the Taxpayer Bill of Rights 2 in 1996.

Intermediate Sanctions Are Often Imposed by the Internal Revenue Service,in