title: Intermediate sanctions for healthcare organizations.
abstract: Intermediate sanctions legislation requires that tax-exempt providers take steps to ensure that their senior staff members are compensated at fair-market value. A first-time violation could subject an individual to an excise tax of 25 percent of the compensation amount deemed to be excess benefit. Failure to correct the violation could subject the individual to an excise tax of 200 percent of the excess benefit. Tax-exempt organizations may invoke a rebuttable presumption of reasonableness that compensation levels are appropriate. Tax-exempt providers should refer to IRS guidance regarding steps to ensuring compliance.
authors.forename: David G
authors.initials: DG
authors.lastname: Samuels
authors.forename: Morris
authors.initials: M
authors.lastname: Shoretz
mesh_terms: D006077:Government Agencies; D019983:Guideline Adherence / Q000331:legislation & jurisprudence; D006740:Hospital Administrators / Q000191:economics* / Q000331:legislation & jurisprudence; D006788:Hospitals, Voluntary / Q000191:economics* / Q000331:legislation & jurisprudence; D012456:Salaries and Fringe Benefits / Q000145:classification / Q000331:legislation & jurisprudence*; D019464:Tax Exemption / Q000331:legislation & jurisprudence*; D014481:United States