SECTION 6. APPLICATION

OF TAX ON EXCESS BENEFIT TRANSACTIONS

Section 4958 of the Code imposes an excise tax, payable by the disqualified person, on each excess benefit transaction between an applicable tax-exempt organization and a disqualified person. Section 4958 also imposes an excise tax on organization managers who knowingly participated in an excess benefit transaction, unless participation was not willful and was due to reasonable cause. Section 1322(h)(3) of the Affordable Care Act amended § 4958(e)(1) to provide that an organization described in § 501(c)(29) is an “applicable tax-exempt organization” subject to § 4958.