9232021 2.00

Private Foundations and Self-Dealing

Author: Jane Searing

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Self-dealing may be the least understood and most commonly triggered Chapter 42 penalty. It is what can go wrong when everyone is trying to do the right thing. Private foundations must identify their disqualified persons and implement policies and procedures to safeguard them from inadvertently committing acts of self-dealing. Self-dealing is not only the subject of penalties on the disqualified persons which may not be abated by the IRS, the transaction must be reversed. Also, if management had knowledge, there are potential penalties on management. Because the consequences are severe those charged with oversight need to be well informed and vigilant.

This on-demand course will cover recent rulings, updates, and best practices in policies and procedures for preventing self-dealing.

Publication Date: April 2018

Designed For
CPAs, enrolled agents, foundation managers, tax return preparers, tax attorneys and private foundations and their donors.

Topics Covered

  • Impact transactions between private foundations and their disqualified persons
  • Status of current IRS rulings and the Priority Guidance Plan regarding self-dealing
  • How to correct and report acts of self-dealing when the occur


Learning Objectives

  • Identify the basics of what constitutes direct and indirect self-dealing transactions
  • Recognize and gain practical knowledge of preventative controls for avoiding self-dealing
  • Differentiate tax tiers for acts of self-dealing
  • Identify transactions considered an exception to self-dealing
  • Differentiate between a private foundation and disqualified person regarding the amount required to correct an act
  • Recognize how a foundation should update a list of disqualified persons
  • Differentiate acts of self-dealing commonly marked "yes" on Form 990-PF
  • Describe when a substantial contributor remains a substantial contributor



Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

Additional Course Details

  • Filed of Study: Taxation
  • Publisher: Wolters Kluwer
  • Course Level: Overview
  • Pre-Requisites: None
  • Enrolled Agent: No
   0 Review  |  Write a review

Available Options

* Course Format:

Write a review

Your Name:

Your Review: Note: HTML is not translated!

Rating: Bad           Good

Enter the code in the box below: