Exempt Organizations Technical Guide›TG 65: Excise Taxes - Excess Benefit Transactions - IRC Section 4958›Table of Contents
B. Relevant Terms
0224 Publ 5835 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
(1) Applicable Tax-Exempt Organizations (ATEO): are those generally described in
Sections 501(c)(3) (except private foundations), 501(c)(4), 501(c)(29), and any organization that was described under the above-listed subsections at any time during the 5-year period ending on the date of the transaction. See Section 4958(e) and section II.A below.
(2) Excess Benefit Transactions (EBT): are any transactions where an economic
benefit is provided by an ATEO directly or indirectly to or for the use of any disqualified person if the value of the economic benefit provided exceeds the value of the consideration (including the performance of services) received for providing such benefit. See Section 4958(c) and section II.C below.
(3) Disqualified Persons (DP): includes persons who are in a position to exercise
substantial influence over the affairs of the organization, members of the family of a disqualified person, 35% controlled entities, persons involved with a related Section 509(a)(3) supporting organization, donor/donor advisors involved in a transaction with a DAF, or investment advisors with respect to a sponsoring organization. See Section 4958(f)(1) and section II.B below.
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