The 2017 Tax Cuts and Jobs Act, Section 4960 imposes a 21% excise tax on certain executive compensation in excess of $1 million as well as certain excess parachute payments paid to a “covered employee” by tax-exempt entities, including tax-exempt hospitals and health systems. Recently, the Internal Revenue Service issued Notice 2019-09, which provides interim guidance on such topics as identifying covered employees, calculating remuneration under Section 4960, and allocating excess parachute payments. In a recent LawFlash, partner Mims Maynard Zabriskie and associate Anna M. Pomykala offer a timely analysis of Notice 2019-09 and identify some of the compliance challenges.