The chief determining factor in deciding if an individual is a disqualified person under the Immediate Sanctions heading of the Internal Revenue Service (IRS) is that a person is in a position to exercise “substantial influence” over the affairs of the organization.
During the AICPA Not-for-Profit Industry Conference, Jeffrey D. Frank of Deloitte Tax LLP discussed aspects of IRS concerns regarding intermediate sanctions, disqualified persons and substantial influence. Frank said that the following are substantial influence factors:
The following are usually considered to have a lack of substantial influence:
As we celebrate our 36th year, NPT remains dedicated to supplying breaking news, in-depth reporting, and special issue coverage to help nonprofit executives run their organizations more effectively.