Latest / North Star Tax and Legal Briefing
California Nonprofit Insider Loans and the 200% IRS Tax
A California charity president signs a "loan" to his own LLC and nobody votes. A September 2026 Tax Court decision shows the insider owing more than $1.3 million in excise taxes on $590,000 he never returned, and California's self-dealing rules reach the same transfer and the other directors with it. How the 25% and 200% taxes work, how cash correction heads off the second tier, and what a board should do now. https://ca-legal.net/california-nonprofit-insider-loan-excess-benefit-5236-jagannath/
The skinny
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