The IRS announced it is nearing completion of a five year long compliance project involving tax-exempt colleges and universities. The project, which began with questionnaires to 400 randomly-selected institutions, focused on reporting of executive compensation and unrelated business income. The IRS’s findings provide warning to all non-profit colleges and universities regarding their process to establish and report executive compensation.
On May 16th, Governor Cuomo announced the issuance of proposed regulations by several New York State agencies which limit administrative costs and executive compensation for entities receiving State funding or State-authorized payments. The proposed regulations arise from Executive Order No. 38, which generally restricts covered organizations from spending more than $199,000 in State funds on executive compensation.