Daily Tax Report ®

IRS Developing Proposed Rules to Clarify Coach Tax

June 10, 2019, 11:30 PM

The IRS is working on proposed regulations for a new tax created to reduce excess parachute payments from nonprofits.

The guidance will address questions the IRS has received on the tax, enacted under the 2017 tax overhaul, including who falls under the definition of “employee” and whether the tax should apply to volunteers who receive compensation from a related for-profit that contributes to a tax-exempt organization.

“We are working on the proposed regulations, but this is one where it is requiring a lot of internal coordination because it really hits the employee benefit concept and exempt organizations concept,” Janine Cook,...

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