Nonprofits are required to report 'excess benefit transactions' on Form 990. There are other items in the FAQ that discuss intermediate sanctions more generally. That matter will be in trial in a state court shortly.
Defendants are the person who received the excess benefit and the board members who approved it.
We're now preparing the Form 990 covering the period in which the excess benefit transaction occurred. My thought in completing the 990 is to be extremely forthcoming about the excess benefit transaction, beyond what might be minimally necessary. The objective is to encourage the IRS to go after the person who received the excess benefit transaction. I realize, and the organization realizes, that an excess benefit transaction in theory gives the IRS the power to revoke exemption. However, I view that as a very remote risk, especially given the bona fide nature of the organization and the efforts the organization is going through to restore its funds.