A new IRS proposal would tighten restrictions on the tax benefits available to companies for compensation paid to top executives.
The proposed regulations, issued Dec.16, reflect initial guidance the IRS provided in 2018 (Notice 2018-68).
- The 2017 tax law (Pub. L. No. 115-97) strengthened a provision under tax code Section 162(m), which prevents public companies from getting a tax deduction for executive compensation exceeding $1 million. The law eliminated commission and performance-based compensation exceptions to the $1 million limit.
- The law also expanded the scope of the provision so that more employees ...