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AICPA Questions IRS Approach to Section 4960 Tax Changes
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Subscribe12 MAY 2026 / AICPA UPDATES
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The American Institute of CPAs (AICPA) is seeking guidance and relief from the Treasury and the Internal Revenue Service (IRS) after Congress expanded Section 4960 under the One Big Beautiful Bill Act (OBBBA). The section, which places a 21% excise tax on salaries above $1 million paid by applicable tax-exempt organizations, has been broadened to include nearly all employees of such organizations, leading to increased administrative complexity, potential issues with historical record-keeping and concerns over volunteer tax obligations.
Some tax rules arrive like a clean audit adjustment. Others show up like a shoebox full of receipts dumped on your desk at 4:58 p.m. on a Friday. That is roughly how many nonprofits, universities, hospital systems, and trade associations are reacting righ...
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