Benefits & Executive Compensation News

IRS T.D.: Tax on Excess Tax-Exempt Organization Executive Compensation (IRC §4960)

Jan. 11, 2021, 5:00 AM

Imposition of excise tax on remuneration in excess of $1,000,000 and any excess parachute payment paid by an applicable tax-exempt organization to any covered employee covered in final regulations released January 11. The final regulations restate certain statutory definitions and define various terms appearing in tax code Section 4960 and provide rules for determining: the amount of remuneration paid for a taxable year (including for purposes of identifying covered employees); whether a parachute payment is paid; whether excess remuneration is paid and in what amount; whether an excess parachute payment is paid and in what amount; and the allocation of...

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