US Treasury, IRS to propose rules on tax-exempt executive compensation
Key takeaways
- US Treasury, IRS to propose rules on tax-exempt executive compensation The US Department of the Treasury and the IRS have released Notice 2026–36.
- In Notice 2026–36, Treasury and the IRS said the forthcoming rules would address payments made by applicable tax-exempt organisations under the One, Big, Beautiful Bill (OBBB).
- Previously, this tax was limited to the five highest‑paid employees of an applicable tax‑exempt organisation (ATEO) in each tax year.
US Treasury, IRS to propose rules on tax-exempt executive compensation The US Department of the Treasury and the IRS have released Notice 2026–36. Credit: Mehaniq/Shutterstock.com. · The Accountant · Mehaniq/Shutterstock.com. Ellichipuram Umesh Mon, June 8, 2026 at 4:20 PM GMT+7 2 min read The US Department of the Treasury and the Internal Revenue Service (IRS) plan to propose regulations on how an excise tax will apply to excessive compensation and “excess parachute payments”.
In Notice 2026–36, Treasury and the IRS said the forthcoming rules would address payments made by applicable tax-exempt organisations under the One, Big, Beautiful Bill (OBBB).
Previously, this tax was limited to the five highest‑paid employees of an applicable tax‑exempt organisation (ATEO) in each tax year.