On November 5, 2018 the Internal Revenue Service released proposed regulations addressing the filing requirements related to the Tax Cuts and Jobs Act’s federal excise taxes on an exempt organization’s executive compensation in excess of $1,000,000 and excess parachute payments. The proposed regulations provide that IRS Form 4720, Return of Certain Excise Taxes, is to be used for reporting the excise taxes and that Form 4720 must be filed by the 15th day of the fifth month after the end of the organization’s taxable year. Thus, an organization reporting on a calendar-year basis that incurred excise tax during the calendar year ending December 31, 2018, must file a Form 4720 and pay the tax due by May 15, 2019. As of the date of this notice, the IRS has not yet updated the Form 4720 to account for these new excise taxes, but we urge exempt organizations to plan ahead for compliance.Continue Reading Federal Excise Taxes on Executive Compensation