(B)— (A) by striking 4 and inserting 3 , and (B) by striking (other than the chief executive officer) and inserting (other than the principal executive officer or principal financial officer) , and (3) by striking or at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , or , and by adding at the end the following: (C) was a covered employee of the taxpayer (or any predecessor) for any preceding taxable year beginning after December 31, 2016. Such term shall include any employee who would be described in subparagraph (B) if the reporting described in such subparagraph were required as so described. . (d) Special rule for remuneration paid to beneficiaries, etc Section 162(m)(4), as amended by subsection (a), is amended by adding at the end the following new subparagraph: (F) Special rule for remuneration paid to beneficiaries, etc Remuneration shall not fail to be applicable employee remuneration merely because it is includible in the income of, or paid to, a person other than the covered employee, including after the death of the covered employee. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 3802. Excise tax on excess tax-exempt organization executive compensation (a) In general Subchapter D of chapter 42 is amended by adding at the end the following new section: 4960. Tax on excess tax-exempt organization executive compensation (a) Tax imposed There is hereby imposed a tax equal to 20 percent of the sum of— (1) so much of the remuneration paid (other than any excess parachute payment) by an applicable tax-exempt organization for the taxable year with respect to employment of any covered employee in excess of $1,000,000, plus (2) any excess parachute payment paid by such an organization to any covered employee. (b) Liability for tax The employer shall be liable for the tax imposed under subsection (a). (c) Definitions and special rules For purposes of this section— (1) Applicable tax-exempt