In addition to changing the tax rates and rules applicable to individuals and corporations, the Tax Cuts and Jobs Act ("Act"), signed into law on Dec. 22, 2017, added new rules affecting the executive compensation paid by certain tax-exempt organizations. Specifically, new Internal Revenue Code ("Code") Section 4960 imposes an excise tax on applicable tax-exempt organizations that pay excess compensation to their most highly compensated employees. The new excise tax is effective for tax years beginning after Dec. 31, 2017, and, therefore, is already in effect.
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