The IRS said Friday it will propose rules on the tax for excessive compensation and payments to employees of nonprofits from the massive GOP tax-and-spending law last year.
Notice 2026-36 signaled the intent to propose rules addressing employee exceptions for limited hours and nonexempt funds. The proposed regulations won’t apply to tax years before the final rules are issued.
“The new law strengthens the accountability of tax-exempt organizations by expanding tax compliance requirements for certain organizations paying excessive compensation and excess parachute payments to their executives,” IRS CEO Frank J. Bisignano said in a statement. “It broadens the scope of ...