IRS Proposes Intermediate-Sanctions/Corporate-Governance Rule

Thanks to Barbara Kincaid for sending along a link to Jones Day's announcement about the IRS's new proposed intermediate-sanction regulation. According to the firm:

On September 8, 2005, the IRS released a set of Proposed Regulations that set forth the standards the IRS proposes to use to determine whether to revoke the § 501(c)(3) status of an organization that has engaged in a transaction that constitutes both traditional private inurement and an excess benefit transaction. Under these Proposed Regulations, organizations that attempt in good faith to follow good corporate governance and compliance practices both before and after a private inurement problem occurs will survive with their tax-exempt status intact. Those organizations that do not follow good corporate governance and compliance practices will lose their tax-exempt status.

Want to know more?  Here's what one of my favorite sites (www.Regulations.gov) has on it:

TITLE:	Standards for Recognition of Tax-Exempt Status if Private Benefit Exists or If an Applicable Tax-Exempt Organization Has Engaged in Excess Benefit Transaction(s)
SUBJECT CATEGORY:	Income and excise taxes: Excess benefit transactions
	View this Regulation in HTML Format
	View this Regulation in PDF Format
PROPOSED RULE
Docket ID:	[REG-111257-05]
CFR Citation:	26 CFR 1, 53
Published:	September 09, 2005 [FR Doc. 05-17858]
Comments Due:	December 08, 2005
How to Comment:	Submit a Comment on this Regulation Send submissions to: CC:PA:LPD:PR (REG-111257-05), room 5203, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-111257-05), Courier"s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC. Alternatively, taxpayers may submit comments electronically via the IRS Internet site at http://www.irs.gov/regs or the FederaleRulemaking Portal at http://www.regulations.gov (IRS-REG-111257-05). A public hearing may be scheduled if requested.

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