Daily Tax Report ®

Treasury Listening Closely to Questions on Nonprofit Tax

Jan. 23, 2020, 8:03 PM

Department of Treasury officials are working to address issues stemming from the tax law’s creation of a tax aimed at highly-paid executives at nonprofits.

Tax code Section 4960 imposes a 21% tax on compensation over $1 million. Officials have been hearing concerns since they issued initial guidance (Notice 2019-09) on the code section, they said Thursday at a D.C. Bar conference.

Major questions surrounded on who is considered to be an employee under the guidance. Groups representing nonprofits previously urged Treasury to carve out employees, who work at corporations and volunteer with a related nonprofit....

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