Alert

Recommended Alerts

Sign Up For Alerts

Final Tax-Exempt Organizations Executive Compensation Excise Tax Regulations Released

On January 11, 2021, the Department of the Treasury and the Internal Revenue Service released final regulations (the “Final Regulations”) providing guidance on the excise tax under section 4960 of the Internal Revenue Code (the “Code”), which applies to certain executive compensation arrangements of tax-exempt organizations and their related organizations.

Read More

Proposed Regulations Issued on Deferred Compensation Arrangements for Tax-Exempt Organizations


Time to Read: 1 minutes Practices: Executive Compensation & Employee Benefits, Tax-Exempt Organizations

Printer-Friendly Version

Today, Treasury and the IRS released proposed regulations under §457 of the Code, which governs the tax treatment of nonqualified deferred compensation paid to employees and independent contractors by tax-exempt organizations and state and local governments. The proposed regulations define key §457 terms, such as “substantial risk of forfeiture” and “bona fide severance pay plan,” and they include many other provisions regarding the treatment of deferred compensation under §457.

Today’s release also includes some modifications to the regulations under §409A, including changes to align with the proposed §457 regulations.

To see the proposed §457 regulations, click here. We will be issuing an Alert with a more comprehensive overview of the new proposed §457 regulations, as well as an Alert on the proposed §409A regulations. Meanwhile, please contact your Ropes & Gray advisor with any questions about the proposed §457 regulations.

Printer-Friendly Version

Cookie Settings