IRS Issues Guidance for New Excise Tax on CU Executive Pay
A review of the guidance by CU Times shows the 21% tax will also apply to parachute payments and deferred compensation plans.
By Peter Strozniak | February 07, 2019 at 09:00 AM
IRS interim compliance guidance will not grandfather deferred compensation plans, which may require more credit unions to pay a new 21% federal excise tax for executives earning more than $1 million.
On December 31, the IRS finally issued a 92-page interim guidance document to assist tax-exempt organizations to comply with the new excise tax that was part of the Tax Cuts and Jobs Act passed by Congress and signed into law by President Donald Trump in December 2017.