Tax Updates

IRS STATISTICS REVEAL FURTHER DECLINE IN EXCISE TAX PAYMENTS

The IRS released statistics on excise taxes paid for 2024.

Section 4960 Compensation Excise Tax

The number of organizations paying the tax on excess compensation decreased by 10% from 2023, with the total payments decreasing by 5%. This follows a more significant decline from 2022 to 2023, when 25% fewer organizations paid the tax and total payments decreased by 15%. Payments may continue to decline for one more reporting year before increasing when changes made by the One Big Beautiful Bill Act take effect.

2024: 1,150 organizations paid $539,476,294
2023: 1,274 organizations paid $569,745,191
2022: 1,710 organizations paid $670,899,001
2021: 516 organizations paid $210,061,282
2020: 302 organizations paid $96,168,764

Section 4968 Endowment Tax

The number of private colleges and universities that paid the section 4968 excise tax on their net investment income decreased by 20%. However, the total tax paid decreased by 56%, reflecting a significant decline in net investment income during the reporting period:

2024: 45 private colleges and universities paid $168,823,327
2023: 56 private colleges and universities paid $380,934,219
2022: 58 private colleges and universities paid $243,710,847
2021: 33 private colleges and universities paid $68,088,906
2020: data not reported to prevent the disclosure of specific taxpayer data

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Tax Updates

Ability to Share with Others in Same Campus or Office. Prohibition on AI.

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