Excess Benefit Transaction

Definition of "Excess benefit transaction"

Ana  Bohabot real estate agent
Ana Bohabot, Real Estate Agent Keller Williams Legacy

Transaction by a tax-exempt organization with a person from inside the organization (disqualified person) that provides an economic benefit to that person that is in excess of the value of the consideration received. Compensation that is deemed to be unreasonable comprises an excess benefit and is subject to a penalty excise tax under section 4958 of the internal revenue code.


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