Section 4960 Excise Tax ResourcesPDF
The 2017 tax reform act introduced Code Section 4960, which imposes a 21% excise tax on certain pay to employees of non-profit organizations. As IPB flagged to its clients early on, the initial IRS interpretation extended this tax to companies whose employees also provide services to a related foundation, VEBA, or PAC.
In response to the initial IRS guidance, IPB filed comments explaining that the IRS interpretation was unnecessarily broad in various respects. IPB has been working on behalf of its clients through Washington contacts to limit the scope of the IRS guidance, challenge IRS overreach in this regard, and advise affected taxpayers as to mitigation techniques and best practices.
Relevant 4960 Resources