Results for tag: "Excess Benefit Transaction"

Excess Benefit Transaction (EBT) is a type of transaction that occurs when a nonprofit organization provides a benefit to an individual or entity that exceeds the fair market value of the benefit. This type of transaction is subject to taxation under the Internal Revenue Code. The tax imposed on an EBT is known as an "excess benefit tax" and is calculated based on the amount of the benefit that exceeds the fair market value. EBTs are typically used by nonprofit organizations to provide compensation to their employees or to provide benefits to their donors. The tax imposed on an EBT is intended to discourage organizations from providing excessive benefits to individuals or entities. Companies in the EBT market include Ernst & Young, KPMG, Deloitte, and PricewaterhouseCoopers. These companies provide services such as tax compliance, tax planning, and consulting services related to EBTs. Show Less Read more