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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. For
purposes of the preceding sentence,
an economic benefit shall not be
treated as consideration for the
performance of services unless such
organization clearly indicated its
intent to so treat such benefit.
(B) Excess benefit.--The term
“excess benefit” means the excess
referred to in subparagraph (A).
(2) Authority to include certain other
private inurement.--To the extent provided in
regulations prescribed by the Secretary, the
term “excess benefit transaction” includes
any transaction in which the amount of any
economic benefit provided to or for the use
of a disqualified person is determined in
whole or in part by the revenues of 1 or more
activities of the organization but only if
such transaction results in inurement not
permitted under paragraph (3) or (4) of
section 501(c), as the case may be. In the
case of any such transaction, the excess
benefit shall be the amount of the inurement
not so permitted.
(d) Special Rules.--For purposes of this section--
(1) Joint and several liability.--If
more than 1 person is liable for any tax
imposed by subsection (a) or subsection (b),
all such persons shall be jointly and
severally liable for such tax.
(2) Limit for management.--With respect
to any 1 excess benefit transaction, the
maximum amount of the tax imposed by
subsection (a)(2) shall not exceed $10,000.
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