Tax Court imposes maximum excess benefit taxes

The Tax Court has affirmed the Internal Revenue Service's imposition of maximum excess benefit taxes on the founder of a charitable corporation that made a no-interest loan to a limited liability company of which the founder was the sole member. It has imposed the 25% basic tax on the loan of $590,000, plus the 200% tax on failure to repay when the tax was imposed, making a total of $1,327,500 due.  It also imposed penalties of about $70,000 for failure to report the transaction and pay amounts due as required.