Tax on excess tax-exempt organization executive compensation

There is hereby imposed a tax equal to the product of the rate of tax under section 11 and the sum of— The employer shall be liable for the tax imposed under subsection (a). For purposes of this section— The term “applicable tax-exempt organization” means any organization which for the taxable year— For purposes of this section, the term “covered employee” means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016. For purposes of this section: The term “remuneration” means wages (as defined in section 3401(a)), except that such term shall not include any designated Roth contribution (as defined in section 402A(c)) and shall include amounts required to be included in gross income under section 457(f). The term “remuneration” shall not include the portion of any remuneration paid to a licensed medical professional (including a veterinarian) which is for the performance of medical or veterinary services by such professional. Remuneration of a covered employee by an applicable tax-exempt organization shall include any remuneration paid with respect to employment of such employee by any related person or governmental entity. A person or governmental entity shall be treated as related to an applicable tax-exempt organization if such person or governmental entity— In any case in which remuneration from more than one employer is taken into account under this paragraph in determining the tax imposed by subsection (a), each such employer shall be liable for such tax in an amount which bears the same ratio to the total tax determined under subsection (a) with respect to such remuneration as— For purposes of determining the tax imposed by subsection (a)(2)— The term “excess parachute payment” means an amount equal to the excess of any parachute payment over the portion of the base amount allocated to such payment. The term “parachute payment” means any payment in the nature of compensation to (or for the benefit of) a covered employee if— Such term does not include any payment— Rules similar to the rules of 280G(b)(3) shall apply for purposes of determining the base amount. Rules similar to the rules of paragraphs (3) and (4) of section 280G(d) shall apply. Remuneration the deduction for which is not allowed by reason of section 162(m) shall not be taken into account for purposes of this section. The Secretary shall prescribe such regulations as may be necessary to prevent avoidance of the tax under this section, including regulations to prevent avoidance of such tax through the performance of services other than as an employee or by providing compensation through a pass-through or other entity to avoid such tax.