There are several challenges that any organization will face in business. The main reason is from changes in regulations, technology and the market place. By examining various journal articles, executives can be able to understand how to respond to these kinds of situations. When it comes to tax issues and information literacy, this requires looking at two pieces of literature that have been written on the subject. This will be accomplished through studying the articles that were written by Ryesky: Honor Broad Membership, Real Tax Liability: Limits to Tax-Exempt Organization and On solid Legal Ground. We can then gain specific insights about how business can respond to these issues. In the article "Honor Broad Membership, Real Tax Liability: Limits to Tax-Exempt Organization written in 2009, the author Ryesky discusses how tax liability laws are applied to honorary board members of trusts. Scandals associated with vary board members of charitable trusts that they are receiving lucrative salaries and benefits. In response to these problems, the IRS announced that they were going to heavily inspecting tax exempt organizations with a policy known as Notice 2004-30. The Congress then passed the Pension Protection Act of 2006. This placed more pressure on tax exempt organizations to improve their transparency on finance. They would chase after the salaries of executive officers and board members more directly. There were greater amounts of vigilance over largest contributors and their funding resources. This action increases the number of investigations center on IRC672. These are specific provisions that allow regulators to directly pursue after anyone who is trying to avoid paying taxes. The problem emerged when it was applied to honorary board members of trust and other non-exempt entities. At the heart of this dispute, was how the IRS should view honorary board members of these organizations. This is because they were not appointed an