Penalties
The intermediate sanction provision goes on to create a penalty which is essentially a claw back of any benefits received plus a penalty as well as excise penalties that may be in excess of 200% of the benefit received. The organization must be returned to the state it was in, to the extent possible, before the person received the excess benefit. While the contract may be modified to prevent any excess benefit once any penalties are paid, organization managers may be liable for penalties up to $10,000 and held jointly and severally liable.
In order to prevent the IRS's invocation of intermediate sanctions any individual serving on the governing body of the organization may not have a conflict of interest regarding the transaction and if they are on the governing body and have a conflict they may answer questions posed by other members, but they must recuse themselves in the decision making process including debate.
Read more about this topic: Intermediate Sanctions
Famous quotes containing the word penalties:
“One of the great penalties those of us who live our lives in full view of the public must pay is the loss of that most cherished birthright of man’s privacy.”
—Mary Pickford (1893–1979)
“I’ve got to go. That’s one of the penalties of being a doctor. I never seem to finish a conversation.”
—Robert M. Fresco, and Jack Arnold. Dr. Matt Hastings (John Agar)