Excess Benefit Transaction
Modified: May 16, 2017

An excess benefit transaction is one in which the organization provides an economic benefit to a disqualified or unqualified person, directly or indirectly, which exceeds the value of the consideration, including the performance of services, received by the organization in return. The regulations specify that a benefit shall not be treated as compensation for performance of services unless the organization clearly indicates its intent to treat the benefit as compensation when the benefit is paid.