Client Case Study
Situation
This faith-based non profit organization engaged us to conduct such a review annually, helping the organization to create a safe harbor if challenged by the IRS.
Having a third party conduct a comparative compensation review of those positions identified as disqualified is an important step in creating a rebuttable presumption of reasonableness, or safe harbor.
Complications
Intermediate Sanctions may be imposed on any disqualified person who receives an excess benefit from a covered non-profit organization and on each organization manager who approves an excess benefit.
Intermediate Sanctions allow the IRS to impose excise tax penalties on both the executive and board members involved with the excessive compensation.
Approach
Results
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