Daily Tax Report ®

White House Reviewing Rules for 2017 Law’s Tax on College Coaches

March 26, 2020, 11:44 AM

The White House regulatory review office is examining the IRS’s proposal for regulating a new tax on the compensation of highly paid nonprofit employees.

The proposed regulations, according the the Office of Management and Budget’s agenda, will provide some definitions of terms in the provision of the 2017 law that created the tax, and seek to prevent abusive workarounds. The review office received the rules on Tuesday, according to its website.

  • The 21% tax hits compensation of nonprofits’ five highest-paid employees in excess of $1 million, as well as exiting employees’ “parachute payments” that are three...
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