Tax Alert: Private Foundation Excise Tax Rate Changed to 1.39%

The Further Consolidated Appropriations Act of 2020, signed into law on December 20, 2019 as part of a spending bill, modified the private foundation excise tax rate to a flat 1.39 percent rate instead of the 2 percent or 1 percent rate dependent on distributions for charitable purposes. The new tax rate is effective for tax years beginning after December 20, 2019.