The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have released Notice 2026-36, announcing their intent to issue proposed regulations regarding taxes on excessive compensation and excess parachute payments made by tax-exempt organizations. Under the One Big Beautiful Bill Act (OBBB), the rules governing executive compensation at applicable tax-exempt organizations (ATEOs) have been significantly expanded. Previously, the excise tax applied only to an organization's five highest-compensated employees. Under the new law, the tax may now apply to any employee receiving more than $1 million in annual compensation or receiving an excess parachute payment. The IRS clarified that individuals who were previously classified as covered employees under earlier regulations will remain subject to the rules. In addition, employees meeting the new compensation thresholds after December 31, 2025, may also be included unless specific exceptions apply. The guidance also provides temporary relief for certain volunteers and employees covered by limited-hours and nonexempt-funds exceptions until final regulations are issued. The Treasury Department and IRS expect to publish proposed regulations in the future to provide additional details and implementation guidance for affected tax-exempt organizations.
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Services
TFMR provides comprehensive accounting, tax, bookkeeping, payroll, and financial advisory services for businesses and individuals. Our experienced team delivers practical solutions that help clients maintain compliance, improve financial performance, and achieve long-term success. We combine industry expertise with personalized service to support your financial goals at every stage.
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Industries
TFMR serves clients across a wide range of industries, including construction, manufacturing, retail, healthcare, professional services, hospitality, transportation, real estate, and non-profit organizations. We understand the unique financial challenges of each sector and provide tailored accounting and tax solutions to meet industry-specific requirements.
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Spotlight
Helping businesses build stronger financial foundations through accurate accounting, strategic planning, and trusted advisory services.
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About TFMR
At TFMR, we believe that strong financial management is the foundation of business success. Our team of accounting and tax professionals provides reliable bookkeeping, tax planning, payroll management, financial reporting, and business advisory services. We work closely with our clients to simplify complex financial matters, ensure regulatory compliance, and provide the insights needed to make informed business decisions with confidence.
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Careers
Join a team dedicated to excellence, professional growth, and client success. At TFMR, you will have the opportunity to work with experienced professionals, develop your skills, and make a meaningful impact while helping businesses and individuals achieve their financial goals. We value collaboration, integrity, and a commitment to outstanding service.
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