Which of the following is true regarding the Internal Revenue Service's concern regarding ?
A) Organizations are charging many of their program expenses to fund-raising.
B) Executives of are receiving excessive salaries and benefits.
C) Both a and b.
D) Neither a nor b.

Question

Quizplus · Accepted Answer

Areas of concern for the IRS with respect to tax exempt organizations are cost allocations, executive compensations and organizations operating outside their tax-exempt purpose. The issue of cost allocations arose when the IRS observed that many reported contribution revenue but reported zero fund-raising activities. The IRS is concerned with excessive compensation which includes salaries and benefits such as deferred compensation, insurance, loans, and medical benefits. The IRS imposes penalties on compensation deemed excessive.

Which of the Following Is True Regarding the Internal Revenue