Abstract
One of the more unique sets of comments about the excess compensation excise tax (IRC § 4960) was submitted to the IRS on April 1 on behalf of the 11 federally chartered Federal Home Loan Banks (FHLBs). Apparently, these banks are tax‐exempt pursuant to IRC § 501(a) as federal instrumentalities described in IRC § 501(c)(1). The excise tax is imposed on applicable tax‐exempt organizations, which include organizations that are exempt from tax under IRC § 501(a). Therefore, it would appear, on the basis of this tax law taken alone, that the FHLBs are subject to the tax.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have