43-1212. Denial of exempt status due to prohibited transactions

An organization shall be denied exemption from taxation under section 43-1201, paragraph 4 by reason of "prohibited transactions" as defined in section 43-1213 only for taxable years subsequent to the taxable year during which it is notified by the department that it has engaged in a prohibited transaction, unless such organization entered into such prohibited transaction with the purpose of diverting corpus or income of the organization from its exempt purposes and such transaction involved a substantial part of the corpus or income of such organization. Denial of exemption for the unreasonable accumulation of income shall be effective in the taxable year of the accumulation.

43-1212. Denial of exempt status due to prohibited transactions

An organization shall be denied exemption from taxation under section 43-1201, paragraph 4 by reason of "prohibited transactions" as defined in section 43-1213 only for taxable years subsequent to the taxable year during which it is notified by the department that it has engaged in a prohibited transaction, unless such organization entered into such prohibited transaction with the purpose of diverting corpus or income of the organization from its exempt purposes and such transaction involved a substantial part of the corpus or income of such organization. Denial of exemption for the unreasonable accumulation of income shall be effective in the taxable year of the accumulation.