By The Epoch Times | Created at 2026-06-06 11:07:15 | Updated at 2026-06-07 13:10:26
1 day ago
The Internal Revenue Service in Washington on Jan. 6, 2026. Madalina Kilroy/The Epoch Times
The Internal Revenue Service (IRS) and the Department of the Treasury issued a notice on Friday, announcing their plan to issue proposed regulation concerning taxation on high compensation paid by tax-exempt organizations to employees.
The notice relates to excessive compensation and excess parachute payments, the IRS said in a June 5 statement. Parachute payments are made to key employees when they are terminated or when the business undergoes a merger or acquisition. An excess parachute payment is any such payment that exceeds three times an employee’s average annual compensation for the most recent five years.
