Tax Notes Quotes Meghan Biss on Impact of New Excise Tax for Nonprofits
A new excise tax aimed at the highly paid employees of tax-exempt organizations may not actually hit its most valuable target: college coaches.
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Meghan R. Biss of Caplin & Drysdale, Chtd. said some practitioners believe the changes that need to be made to the excise tax may be too substantive to be dealt with through a technical correction.
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Biss said some universities may want to give up their section 501(c)(3) letter and rely solely on their governmental entity status if they think it will help them avoid the tax. She noted that the IRS saw an increase in exempt organizations relinquishing their section 501(c)(3) status and relying instead on their governmental immunity following the passage of the Affordable Care Act.
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Excerpt taken from the article "Will the Nick Saban Tax Apply to Nick Saban?" by Stephanie Cumings for Tax Notes.