Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Itemized Deductions
Application for Automatic Extension of Time
Request for Taxpayer Identification Number (TIN) and Certification

 

Single and Joint Filers With No Dependents
Employer's Quarterly Federal Tax Return
Employee's Withholding Allowance Certificate
Request for Transcript of Tax Return

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

"Knowing" agreement to taxable expenditure

A foundation manager is considered to have agreed to an expenditure knowing that it is a taxable expenditure only if he or she:

  1. Has actual knowledge of enough facts that, based only on these facts, the expenditure would be a taxable expenditure,
  2. Is aware that an expenditure under these circumstances may violate the federal tax law governing taxable expenditures, and
  3. Negligently fails to make reasonable attempts to determine whether the expenditure is a taxable expenditure, or is aware that it is in fact a taxable expenditure.

Having reason to know certain facts does not constitute knowing, except to the extent that it tends to prove actual knowledge.


Return to Life Cycle of a Private Foundation