IRS FINALIZES RULES ON ENDOWMENT EXCISE TAX

The Internal Revenue Service and Treasury Department last week released the final rules implementing the so-called endowment tax on colleges and universities approved as part of the 2017 tax reform bill.

The measure created a 1.4 percent excise tax on net investment income at private colleges and universities with at least 500 tuition-paying students and assets of at least $500,000 per student. The IRS anticipates that about 25 to 40 institutions will fall under this definition.