ANCOR is sharing this article by ASAE, the association for association professionals to which ANCOR belongs, because of its relevance to our members’ financial situations:
“The [Internal Revenue Service] IRS announced April 9 that, due to the COVID-19 pandemic, tax returns and payments for tax-exempt organizations and fiscal year businesses due between April and June are now delayed until July 15, 2020.
The extension announced by Treasury Secretary Steven Mnuchin includes excise taxes that associations and other tax-exempt organizations pay on certain executive compensation. ASAE had asked Treasury and the IRS for this relief while associations continue to experience extreme revenue losses during the coronavirus pandemic.
The 21 percent excise tax on tax-exempt executive compensation exceeding $1 million in any taxable year was enacted as part of the 2017 Tax Cuts and Jobs Act. ASAE has repeatedly voiced concern about the tax because compensation subject to the tax includes more than just base salary. It includes the cash value of most benefits, including those that have vested but have not been received, retirement benefits, and certain retention payments contingent upon service. This means that many nonprofit groups could be impacted, not just those with highly compensated CEOs.”
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