Overview
Bloomberg Tax quoted Elinor Ramey in a June 9 article titled "IRS Limits Rules Aimed at High-Paid Nonprofit Executives." The article discusses IRS rules for a tax aimed at a nonprofit's five highest-paid employees earning $1 million a year or more. Lawmakers created it largely to rein in highly compensated coaches at private colleges or executives at nonprofit hospitals.
Ramey says the exceptions help address what could have otherwise been unintended consequences in the rules. "There was no real expectation that corporate officers' for-profit compensation should be taxed under this rule."
The full article can be read at Bloomberg Tax.