IRS Announces Intent to Issue Regulations on Expanded Executive Compensation Excise Tax for Tax-Exempt Organizations

On June 5, 2026, the Internal Revenue Service released Notice 2026-36 announcing its intent to issue proposed regulations under Section 4960 of the Internal Revenue Code addressing the significant expansion under the One Big Beautiful Bill Act (OBBBA) of the excise tax on tax-exempt organization executive compensation. The Notice provides important interim guidance on the effective date of the expanded definition of “covered employee” and confirms that the IRS intends to preserve certain regulatory exceptions that protect tax-exempt organizations from inadvertent application of the tax. READ MORE