IRS, Treasury Outline Tax Guidance Priorities for Nonprofits

The Treasury Department and Internal Revenue Service (IRS) this week released their 2026–2027 Priority Guidance Plan, outlining tax regulatory priorities for the coming year. Several projects could affect associations and the broader nonprofit sector.

Of particular interest to associations, the plan includes regulations implementing changes under the One Big Beautiful Bill Act concerning excess compensation paid by tax-exempt organizations, including an expanded definition of employees covered by those rules. It also identifies guidance on nonprofit information reporting requirements, including fiscal sponsorship arrangements, that could impact Form 990 reporting.

Other nonprofit priorities include guidance on the Johnson Amendment’s restrictions on political campaign activity by 501(c)(3) organizations and certain donor-advised fund arrangements. The agencies also plan to finalize nondiscrimination regulations for tax-exempt private schools and develop regulations addressing the investment-income excise tax on certain private colleges and universities.

The plan identifies areas of focus but provides limited detail about the direction of forthcoming guidance and sets no deadlines for completing projects. OSAP, ASAE and the Community Impact Coalition will monitor developments and keep members informed as proposals emerge.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.