While engaging in a prohibited transaction can result in an exempt organization being subject to tax,it will not result in an exempt organization losing its exempt status.

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Engaging in a prohibited transaction can result in an exempt organization being subject to tax and can also result in the organization losing its exempt status. The loss of exempt status would depend on the severity and frequency of the prohibited transactions, and could result in the revocation of the organization's tax-exempt status by the IRS.

While Engaging in a Prohibited Transaction Can Result in an Exempt