Arthur Andersen Guide

Arthur Andersen Guide to Navigating Intermediate Sanctions: Compliance and Documentation Guidelines for Health Care and Other Tax-Exempt Organizations (Book with Diskette for Windows)
Diane Cornwell (Editor), et. al.

Valuable for all US Charities and Nonprofits

The Internal Revenue Service has made significant changes to regulations affecting nonprofits, shifting responsibility for compliance from the organization itself to the directors, staffs, and major donors as individuals. Most nonprofit board members and executives are only dimly aware of these changes, and fewer still are prepared with the documentation necessary to address issues of conflict of interest, private inurement, and disqualified persons.

One sentence from the book’s introduction sums up the need for action: “The most important aspect of this legislation is that it empowers the IRS to impose punishment on individuals who violate the tax code by levying significant excise taxes initially and then more than quadrupling the penalty amount if remedy is not made to the [nonprofit] organization.”

The solution, and the purpose of the book, is also summed up in one sentence in the introduction: “The key to protecting these organizations’ officers and other interested parties from excise taxes is proper documentation.”

The book is 3-ring bound and well-tabbed for easy reference and for copying of template forms and sheets that are included. In addition, the book ships with a companion PC diskette with forms in Microsoft Word 6.0/Word 95 format that should be usable by most current word processing programs.

This book is a valuable resource for nonprofit executives, consultants, attorneys, and others providing organizational development and counseling to nonprofits and charities.

The book does include examples and references to the health care field, but its content is equally applicable to all nonprofits.

The book’s Table of Contents is as follows:

  1. Overview of the Intermediate Sanctions Law
  2. Establishing an Intermediate Sanctions Review Process
  3. Disqualified Persons Determination
  4. Diagnostic Review for Disqualified Persons
  5. Diagnostic Review for Organization Manager Liability
  6. Examining Revenue-Sharing Transactions
  7. Rebuttable Presumption of Reasonableness

— Intermediate Sanctions Law — Excerpt from House Ways and Means Committee Report on Taxpayer Bill of Rights 2 — Intermediate Sanctions Proposed Regulations — IRS Model Conflicts of Interest Policy