Exempt Organizations Technical Guide›TG 62: Excise Taxes on Taxable Expenditures – IRC Section 4945›Table of Contents
A.5. Definition of Willful
Publication 5590 — Exempt Organizations Technical Guide TG 62: Excise Taxes on Taxable Expenditures under IRC 4945 · 2026-10-03 edition · updated 2026-10-04 · United States
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(1) The foundation manager’s agreement to a taxable expenditure must also be
"willful" in order for him/her to be liable for the first tier tax under Section 4945(a)(2). Willful is defined as voluntary, conscious, and intentional. See Treas. Reg. 53.4945-1(a)(2)(iv).
(2) Motive to avoid the restrictions of the law or tax liability is not required to show
that an agreement is willful. However, a foundation manager’s agreement to a taxable expenditure is not willful if he does not know that it is a taxable expenditure.
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