Golden Parachute Rules apply to Non Profit Corporation Execs?

[Floridaattorney]

Not for Profit (501c3) nursing home may be taken over by a for profit provider.

CEO of Not for Profit corp may receive a large severance package.

Would this fall within scope of irc sections 280G and 4999 or, would employer's status as a non-profit 501c3 exclude this from scope of those sections?

[jpod]

Probably not. While there is an exemption from the GP rules for tax-exempt organizations, I believe the exemption applies only if the entity is a tax-exemption organization both before AND AFTER the CIC.

[Floridaattorney]

jpod, i think you are right see 280 regs q/a #6(a)(3). thanks for your reply.