Section 4958 of the Internal Revenue Code

Portion of a federal law that imposes a penalty excise tax on an Excess Benefit Transaction of 25% of the excess benefit on the person from inside the organization (disqualified Person) receiving the benefit. Also imposed is a penalty excise tax of 10% of the excess benefit on the manager within the organization awarding the excess benefit. If this excess amount is not repaid to the tax-exempt organization within a reasonable period of time, the disqualified person incurs an additional tax penalty of 200% of the excess benefit received.