Fiscal Sponsorship Transparency Act of 2026 imposes taxes on improper conduit arrangements by tax-exempt organizations.

The Fiscal Sponsorship Transparency Act of 2026 amends the Internal Revenue Code to impose taxes on improper conduit arrangements by specified tax-exempt organizations. An improper conduit arrangement involves transferring contributions to a non-exempt person without exercising discretion and control over the funds. The act imposes a 20% tax on the transferred amount, with additional taxes of 100% if not corrected within the taxable period. It also imposes a 5% tax on organization managers who knowingly agree to such transfers.

Fiscal Sponsorship Transparency Act of 2026 imposes taxes on improper conduit arrangements by tax-exempt organizations.

The Fiscal Sponsorship Transparency Act of 2026 amends the Internal Revenue Code to impose taxes on improper conduit arrangements by specified tax-exempt organizations. An improper conduit arrangement involves transferring contributions to a non-exempt person without exercising discretion and control over the funds. The act imposes a 20% tax on the transferred amount, with additional taxes of 100% if not corrected within the taxable period. It also imposes a 5% tax on organization managers who knowingly agree to such transfers.