Exempt Organizations Technical Guide›TG 65: Excise Taxes - Excess Benefit Transactions - IRC Section 4958›Table of Contents
Special Rules for Churches
0224 Publ 5835 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
(1) If a transaction involves a church, Section 7611 procedures must be followed to
initiate and conduct any inquiry or examination into whether an excess benefit transaction has occurred between a church and a disqualified person. See also Treas. Reg. 53.4958-8(b) and Treas. Reg. 301.7611-1 Q&A 19.
(2) The reasonable belief required in Section 7611(a)(2) to initiate a church tax inquiry
is satisfied if a reasonable belief exists that a Section 4958 excise tax is due from a disqualified person’s excess benefit transaction involving a church. See Treas. Reg. 53.4958-8(b).
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(3) IRM 4.70.19, Church Tax Inquiries and Examinations Under IRC 7611, (or its
successor) provides current procedures for conducting church tax inquiries and examinations.
Note: Also see TG 3-23, 501(c)(3) Foundation Status, Church Section 509(a)(1) and Section 170(b)(1)(A)(i). TG 3-23 will be published in the future. For a list of all TGs, published and in process, see the cumulative list of Technical Guides located in TG 0 Technical Guide Overview, Exhibit III, starting on page 10.
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