Sec. 5201. Modification of intermediate sanctions
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Subsection
(a)of section 4958 is amended by adding at the end the following new paragraph: In any case in which a tax is imposed by paragraph (1), there is hereby imposed on the organization a tax equal to 10 percent of the excess benefit. . Subsection
(d)of section 4958 is amended by adding at the end the following new paragraph: Subsection (a)(3) shall not apply to a transaction, if— the organization establishes that the minimum standards of due diligence described in subparagraph
(B)were met with respect to the transaction, or the organization establishes to the satisfaction of the Secretary that such other reasonable procedures were used to ensure that no excess benefit was provided. An organization shall be treated as satisfying the minimum standards of due diligence described in this subparagraph with respect to any transaction, if— the transaction was approved in advance by an authorized body of the organization composed entirely of individuals who did not have a conflict of interest with respect to the transaction, the authorized body obtained and relied upon appropriate data as to comparability prior to approval of the transaction, and the authorizing body adequately and concurrently documented the basis for approving the transaction. Meeting the requirements of clause
(i)or
(ii)of subparagraph
(A)with respect to a transaction shall not give rise to a presumption of reasonableness for purposes of the taxes imposed by paragraphs
(1)or
(2)of subsection
(a)and shall not, by itself, support a conclusion that a manager did not act knowingly for purposes of subsection (a)(2). . Section 4958 is amended by adding at the end the following new subsection: An organization manager’s reliance on a written opinion of a professional with respect to elements of a transaction within the professional’s expertise shall not, by itself, preclude the manager from being treated as participating in the transaction knowingly. . Paragraph
(1)of section 4958(f) is amended by striking and at the end of subparagraph (E), by striking the period at the end of subparagraph
(F)and inserting , and , and by adding at the end the following new subparagraph: any person who performs services as an athletic coach for the organization. . Subparagraph
(B)of section 4958(f)(1) is amended by inserting or
(G)after subparagraph
(A). Subparagraph
(F)of section 4958(f)(1) is amended— by striking which involves a sponsoring organization (as defined in section 4966(d)(1)), , and by striking such sponsoring organization (as so defined) and inserting the organization . Subparagraph
(B)of section 4958(f)(8) is amended to read as follows: For purposes of subparagraph (A), the term investment advisor means— with respect to any organization, any person who is compensated by such organization and is primarily responsible for managing the investment of, or providing investment advice with respect to, assets of such organization, and with respect to any sponsoring organization (as defined in section 4966(d)(1)), any person (other than an employee of such organization) compensated by such organization for managing the investment of, or providing investment advice with respect to, assets maintained in donor advised funds (as defined in section 4966(d)(2)) owned by such organization. . Paragraph
(1)of section 4958(e) is amended by inserting (5), (6), after (4), . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.