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Tax on Nonprofits Could Also Snare Companies

June 13, 2019

Companies with affiliated tax-exempt entities could find themselves surprised to be on the hook for a new tax, in light of interim guidance recently released by the U.S. Internal Revenue Service (IRS). A controversial provision of the Tax Cuts and Jobs Act imposes a 21 percent excise tax on compensation that exceeds $1 million for the “covered employees” of tax-exempt entities. Such entities include 501(c)(3) public charities, private foundations, and other 501(c) exempt organizations. Read more at CFO.com.