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February 18, 2021

Final Guidance on Section 4960

This Briefing is brought to you by AHLA’s Tax and Finance Practice Group.
  • February 18, 2021
  • Jeffrey D. Frank , Deloitte Tax LLP
  • Jessica Karantonis , Deloitte Tax LLP

The Tax Cuts and Jobs Act (TCJA) of 2017 created a new excise tax on excess executive compensation paid by tax-exempt organizations under the newly created IRC Section 4960. On January 11, 2021, Treasury and the Internal Revenue Service (IRS) released final regulations (T.D. 9938, the Final Regulations) providing final guidance on the tax. The Final Regulations finalize, with some changes, the Proposed Regulations (85 Fed. Reg. 35746, the Proposed Regulations), which were released on June 5, 2020. Interim guidance was released prior to the Proposed Regulations, on December 31, 2018 via Notice 2019-09 (Notice).

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