05 June 2026 Treasury and IRS intend to propose regulations under IRC Section 4960 related to the excise tax on excess executive compensation paid by tax-exempt organizations On June 5, 2026, the Treasury Department and IRS announced (Notice 2026-32 (Notice)) the intent to issue proposed regulations under IRC Section 4960 that would incorporate changes made by the "One Big Beautiful Bill Act" (OBBBA) to the excise tax imposed on excess compensation and excess parachute payments paid to employees of tax-exempt organizations. The Notice said the proposed regulations would, among other things, remove references to a tax-exempt organization's five highest-compensated employees and provide a post-OBBBA definition of a "covered employee." A Tax Alert is forthcoming.
Document ID: 2026-1206 | ||
