110 STAT. 1476 PUBLIC LAW 104-168-JULY 30, 1996 "(2) ON THE MANAGEMENT,—In any case in which a tax is imposed by paragraph (1), there is hereby imposed on the participation of any organization manager in the excess benefit transaction, knowing that it is such a transaction, a tax equal to 10 percent of the excess benefit, unless such participation is not willful and is due to reasonable cause. The tsix imposed by this paragraph shall be paid by any organization manager who participated in the excess benefit transaction. "(b) ADDITIONAL TAX ON THE DISQUALIFIED PERSON. — In any case in which an initial tax is imposed by subsection (a)(1) on an excess benefit transaction and the excess benefit involved in such transaction is not corrected within the taxable period, there is hereby imposed a tax equal to 200 percent of the excess benefit involved. The tax imposed by this subsection shall be paid by any disqualified person referred to in subsection (f)(1) with respect to such transaction. "(c) EXCESS BENEFIT TRANSACTION; EXCESS BENEFIT. — For purposes of this section— "(1) EXCESS BENEFIT TRANSACTION. — "(A) IN GENERAL. — The term 'excess benefit transaction' means any transaction in which an economic benefit is provided by an applicable tax-exempt organization directly or indirectly to or for the use of any disqualified person if the value of the economic benefit provided exceeds the value of the consideration (including the performance of services) received for providing such benefit. For purposes of the preceding sentence, an economic benefit shall not be treated as consideration for the performance of services unless such organization clearly indicated its intent to so treat such benefit. "(B) EXCESS BENEFIT. —The term 'excess benefit' means the excess referred to in subparagraph (A). "(2) AUTHORITY TO INCLUDE CERTAIN OTHER PRIVATE INUREMENT.— To the extent provided in regulations prescribed by the Secretary, the term 'excess benefit transaction' includes any transaction in which the amount of any economic benefit provided to or for the use of a disqualified person is determined in whole or in part by the revenues of 1 or more activities of the organization but only if such transaction results in inurement not permitted under paragraph (3) or (4) of section 501(c), as the case may be. In the case of any such transaction, the excess benefit shall be the amount of the inurement not so permitted. "(d) SPECIAL RULES.—For purposes of this section— "(1) JOINT AND SEVERAL LIABILITY. — If more than 1 person is Uable for any tax imposed by subsection (a) or subsection (b), all such persons shall be jointly and severally liable for such tax. "(2) LIMIT FOR MANAGEMENT.—With respect to any 1 excess benefit transaction, the msiximum amount of the tax imposed by subsection (a)(2) shall not exceed $10,000. "(e) APPLICABLE TAX-EXEMPT ORGANIZATION.—For purposes of this subchapter, the term 'applicable tax-exempt organization' means— "(1) any organization which (without regard to any excess benefit) would be described in paragraph (3) or (4) of section 501(c) and exempt from tax under section 501(a), and
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