EXEMPT ORGANIZATIONS

NOTICE 2019–09, page 403. This notice provides interim guidance on the provisions of the new § 4960 added by the Tax Cuts and Jobs Act, and announces the intent of Treasury and the IRS to issue proposed regulations. Section 4960 provides that excess remuneration and excess parachute payments paid by an applicable taxexempt organization to a covered employee are subject to an excise tax (currently 21 percent). This notice provides interim guidance defining (1) “applicable tax-exempt organization,” (2) “excess remuneration,” (3) “covered employee,” and (4) “excess parachute payment.” In addition, the notice instructs taxpayers on how to report and pay the excise tax.

Finding Lists begin on page ii.