Exempt Organizations Technical Guide›TG 62: Excise Taxes on Taxable Expenditures – IRC Section 4945›Table of Contents

B. Second Tier Taxes

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

(1) The second tier taxes imposed by Section 4945(b) are designed to induce private

foundations and their managers to promptly correct any improper expenditures. If a private foundation fails to correct a taxable expenditure within the taxable period, both the foundation and those managers who fail to agree to the corrective action will be liable for these taxes.

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▸Contents — Publication 5590 — Exempt Organizations Technical Guide TG 62: Excise Taxes on Taxable Expenditures under IRC 4945

Publication 5590 — Exempt Organizations Technical Guide TG 62: Excise Taxes on Taxable Expenditures under IRC 4945

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