News & Analysis as of

Executive Compensation Nonprofits Excise Tax

Miller Canfield

One Big Beautiful Bill: Effect on Exempt Organizations

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The sweeping tax package known as the One Big Beautiful Bill (OBBB), which passed on July 3 and was signed by President Donald Trump by July 4, brings notable changes for tax-exempt organizations, including new limits on...more

Fox Rothschild LLP

Nonprofits and Donors Face New Tax Rules as Congress Passes Landmark Bill

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Congress has officially passed the One Big Beautiful Bill Act, a sprawling piece of tax legislation with major implications for nonprofit organizations and their supporters. While some of the most controversial proposals were...more

Ropes & Gray LLP

Congress Passes Final Tax Package: Key Provisions for Tax-Exempt Organizations

Ropes & Gray LLP on

On July 3, the House of Representatives approved “The One Big Beautiful Bill Act” as approved two days earlier by the Senate. The final version of the bill contains several provisions relevant to tax-exempt organizations. The...more

Ropes & Gray LLP

Senate Tax Package Includes Major Changes to Endowment and Executive Compensation Excise Taxes

Ropes & Gray LLP on

On July 1, the Senate approved its version of “The One Big Beautiful Bill Act,” containing several provisions relevant to tax-exempt organizations. Importantly, certain proposed amendments contained in draft legislation...more

ArentFox Schiff

House Advances Tax Legislation: Implications for Tax-Exempt Organizations

ArentFox Schiff on

Last week, the US House of Representatives passed H.R. 1, the “One Big Beautiful Bill Act.” This alert highlights the provisions in the Bill that could impact tax-exempt organizations....more

Proskauer - Employee Benefits & Executive...

A Trap for the Unwary – Nonprofit Organization Compensation Arrangement Considerations for High Caliber Executives

Like any for-profit company, nonprofit organizations want to attract and retain high caliber executives to achieve and further their missions. To accomplish this, a nonprofit organization may have to offer a particularly...more

WilmerHale

The Section 4960 Excise Tax: Application to Tax-Exempt and Affiliated Taxable Entities

WilmerHale on

Federal tax law changes enacted with the Tax Cuts and Jobs Act of 2017 may require tax-exempt organizations to reevaluate their compensation practices, particularly with respect to employee severance. Section 4960 of the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Don’t Forget About Section 4960 Compliance

Section 4960 of the Internal Revenue Code of 1986 (IRC), as amended, imposes an excise tax on compensation of certain highly compensated employees of tax-exempt organizations. In an apparent attempt to level the playing field...more

Bracewell LLP

After the Dust Settles: Recapping Certain Tax Reform Provisions Affecting Exempt Organizations

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As is well known, on December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (the “Final Bill”) into law. During the course of this massive legislative effort, various provisions affecting tax-exempt organizations...more

Nutter McClennen & Fish LLP

Practical Insights on Tax Reform: Impact on Exempt Organizations

On December 22, 2017, President Trump signed into law legislation, known as the Tax Cuts and Jobs Act (“TCJA”), which is the most extensive overhaul of the United States Internal Revenue Code (the “Code”) in 30 years. In...more

Bowditch & Dewey

Trump’s Tax Reform: Effect on Nonprofits

Bowditch & Dewey on

The Administration’s frenzy to pass “tax reform” created tax breaks for some—I’m looking at you, the Trump family—increased taxes for others, and confusion for everyone, at least until the IRS is able to promulgate official...more

Poyner Spruill LLP

Tax Reform Could Cost Tax Exempt Entities

Poyner Spruill LLP on

Under the recently enacted tax reform act (Tax Cuts and Jobs Act), tax-exempt organizations may be required to pay a 21 percent excise tax on certain compensation and certain separation pay. The new excise tax applies...more

Mintz - Employment Viewpoints

New Tax Law Brings Penalties for Top Paid Non-Profit Executives

The “intermediate sanctions” rules under Section 4958 of the Internal Revenue Code have long governed the payment of compensation to executives of public charities. While these rules are highly prescriptive, if followed, they...more

Cadwalader, Wickersham & Taft LLP

Provisions of the Final Tax Reform Bill Affecting Nonprofit Tax-Exempt Organizations

On December 20, 2017, the Senate and House of Representatives passed H.R. 1, known as the “Tax Cuts and Jobs Act” (“Tax Reform Bill”). President Trump is expected to sign the Tax Reform Bill by early January. The Tax Reform...more

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