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Deferred Compensation › Excise Tax

Deferred Compensation is a financial arrangement whereby a portion of an employee's current wages are distributed at a later time, usually to delay tax liability. Deferred compensation often takes the form of... more +
Deferred Compensation is a financial arrangement whereby a portion of an employee's current wages are distributed at a later time, usually to delay tax liability. Deferred compensation often takes the form of stock options or severance payments.  less -
Proskauer - Not for Profit/Exempt...

Final Regulations on Executive Compensation Excise Tax (Section 4960) Carries Forward Most Concepts from Proposal

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On January 19, 2021 the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) published in the Federal Register Final Regulations (the “Final Regulations”) interpreting the excise tax under Section...more

Proskauer - Not for Profit/Exempt...

Five Excise Tax Tips For Tax-Exempt Employers

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As we have previously discussed, the 2017 tax reform act created a new excise tax under section 4960 of the Internal Revenue Code that will affect many tax-exempt employers. The tax is 21% of certain compensation and can be...more

Blank Rome LLP

Nonprofits Should Be Wary of Excise Tax Complexity

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As part of 2017’s Tax Cuts and Jobs Act, Congress added new Section 4960 to the Internal Revenue Code. Section 4960 imposes an excise tax — currently set at 21 percent — on “applicable tax-exempt organizations” that pay...more

Katten Muchin Rosenman LLP

Interim IRS Guidance on New Executive Compensation Requirements for Tax-Exempt Entities Creates New Challenges

Katten Muchin Rosenman LLP on

Under new Section 4960 ("Section 4960") of the Internal Revenue Code of 1986, as amended ("IRC") that was adopted as part of the Tax Cuts and Jobs Act of 2017 (Tax Act), an excise tax under IRC Section 11 (currently 21...more

Carlton Fields

Retirement Plans Can Solve The Million-Dollar Problem For Entities At Risk Of Excise Taxes On Compensation

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All entities, including governmental entities, are now potentially liable for penalties due to overpaying employees....more

Saul Ewing LLP

Tax Cuts and Jobs Act of 2017 Brings New Complexity to Compensating Employees of Tax-Exempt Organizations

Saul Ewing LLP on

Deferred compensation arrangements maintained by tax-exempt organizations must already comply with certain provisions of the Internal Revenue Code of 1986, as amended (“Code”), including the deferred compensation rules under...more

Skadden, Arps, Slate, Meagher & Flom LLP

Tax Cuts and Jobs Act: Impact on Tax-Exempt Organizations

Skadden, Arps, Slate, Meagher & Flom LLP on

On December 22, 2017, President Donald Trump signed into law the Tax Cuts and Jobs Act (the Act), which imposes a new excise tax on certain tax-exempt organizations for compensation paid to their covered employees in excess...more

Pillsbury Winthrop Shaw Pittman LLP

Key Tax Reform Issues for Nonprofit Membership Organizations/Associations

Pillsbury Winthrop Shaw Pittman LLP on

Associations avoided the harshest proposals but should be aware of several important new tax issues. Associations subject to unrelated business income tax can no longer use losses in one unrelated business to offset income...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

Jackson Lewis P.C.

2018 Tax Reform Series: New Excise Tax On “Excess” Executive Compensation Paid By Tax-Exempt Employers

Jackson Lewis P.C. on

This is the fifth article in our series covering the various employee benefits-related changes contained in the Tax Cuts and Jobs Act signed by the President on December 22, 2017. Some of the most fundamental changes under...more

Mintz - Employment Viewpoints

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

Mintz - Employment Viewpoints on

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

Williams Mullen

GOP Tax Reform: Impact on Executive Compensation and Employee Benefit Plans

Williams Mullen on

The tax reform act, formerly known as the Tax Cuts and Jobs Act (the “Act”), was approved by House and Senate Republicans and is ready to be signed into law by President Donald Trump. President Trump is expected to sign the...more

Robinson & Cole LLP

Tax Cut Impacts on Executive Compensation and Employee Benefits

Robinson & Cole LLP on

After much back and forth, the House and Senate both voted to pass the Tax Cuts and Jobs Act (Act), and the President is expected to sign the legislation shortly. The changes made by the Act are arguably the biggest leap...more

K&L Gates LLP

Just-Passed Tax Cuts and Jobs Act Will Significantly Impact Higher Education

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House and Senate Republicans passed a comprehensive tax reform bill on December 20, 2017 that makes sweeping changes throughout the Internal Revenue Code affecting many educational institutions, as well as most individuals...more

Proskauer - Tax Talks

House of Representatives and Senate Conferees Reach Agreement on the Tax Cuts and Jobs Act (H.R. 1): Description of the Conference...

Proskauer - Tax Talks on

On Friday, December 15, the U.S. House of Representative and Senate conferees reached agreement on the Tax Cuts and Jobs Act (H.R. 1) (the “Final Bill”), and released legislative text, an explanation, and the Joint Committee...more

Blank Rome LLP

Congress’ New Tax Law—Excise Tax Coming on Compensation of Tax-Exempt Organization Executives

Blank Rome LLP on

The Tax Cuts and Jobs Act (the “Act”), which was agreed upon by the House/Senate Conference Committee last week, includes a provision that imposes an excise tax equal to the corporate tax rate—which is 21 percent under the...more

Proskauer - Tax Talks

U.S. Senate Passes Its Version of the Tax Cuts and Jobs Act (H.R. 1); Descriptions of the Bills Passed in the House and Senate and...

Proskauer - Tax Talks on

In the early hours of Saturday morning, the U.S. Senate passed the Tax Cuts and Jobs Act (H.R. 1) (the “Senate bill”), just over two weeks after the U.S. House of Representatives passed its own version of the same legislation...more

Jackson Lewis P.C.

Tax-Exempts And Public Companies Beware – Major Changes To Executive Compensation Tax Rules Loom

Jackson Lewis P.C. on

On December 2, 2017, the U.S. Senate passed its version of the Tax Cuts and Jobs Act (the “Senate Bill”). Our Benefits Law Advisors blog previously discussed some of the major provisions of a draft House of Representatives...more

Davis Wright Tremaine LLP

Federal Tax Reform Bill Makes Significant Changes Related to Executive Compensation

Davis Wright Tremaine LLP on

On November 16, the House of Representatives passed its version of the Tax Cuts and Jobs Act, and the Senate passed its version of the bill on December 2. Although the House and Senate must first reconcile their respective...more

Proskauer - Tax Talks

House of Representatives Passes the Tax Cuts and Jobs Act (H.R. 1); Senate Finance Committee Approves Modified Version; Comparison...

Proskauer - Tax Talks on

Yesterday afternoon, the House of Representatives passed the Tax Cuts and Jobs Act (H.R. 1) (the “House bill”). The House bill is identical to the draft bill approved by the House Ways and Means Committee on November 10. Late...more

Pillsbury Winthrop Shaw Pittman LLP

Tax Reform: The Shifting Landscape of Executive and Equity Compensation

Pillsbury Winthrop Shaw Pittman LLP on

The House and Senate propose wide-sweeping amendments to the tax rules regarding executive and equity compensation that would affect public and private for-profit companies as well as tax-exempt organizations. The House...more

K&L Gates LLP

Tax Cuts and Jobs Act Could have Far-reaching Effects on Higher Education

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The House of Representatives and the Senate are on a fast track to pass sweeping tax reform legislation that would have widespread implications for colleges and universities, their employees, and their donors. As part...more

Sheppard Mullin Richter & Hampton LLP

Thanksgiving Tax Frenzy – New Tax Bill Proposes Executive Compensation Changes That Could Derail Deferred Compensation and Stock...

Sheppard Mullin Richter & Hampton LLP on

Congress has been in a frenzy to try and get new tax legislation passed by Thanksgiving, and members of the House and Senate would presumably rather be enjoying a feast rather than drafting and analyzing additional tax...more

Proskauer - Tax Talks

Tax Planning Under the Tax Cuts and Jobs Act: Flow-Throughs Are the Answer to Everything

Proskauer - Tax Talks on

The tax reform bills introduced in the House of Representatives and the Senate dramatically reduce the corporate tax rate from 35% to 20% and create added incentives for taxpayers to invest capital into U.S. businesses with...more

McDermott Will & Emery

Senate Tax Overhaul Bill Slaps Tax-Exempt Organizations

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In what can only be described as a brutal attack on the nonprofit sector, the Senate has proposed sweeping changes that would have dramatic adverse effects on all tax-exempt organizations. Whereas the latest version of the...more

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