Proposed Regulations Under Code Section 162(m)

September 06, 2011
The IRS recently issued proposed regulations under Code Section 162(m) that clarify certain requirements with respect to the performance-based compensation exemption from Section 162(m)’s $1 million deduction limit otherwise applicable to compensation paid to certain public company executives. This update examines the proposed regulations, which also clarify the scope of the transition relief from the general application of Section 162(m) available to a corporation that becomes publicly held.