By Sally P. Schreiber, J.D.

In Notice 2018-68, the IRS issued guidance on Sec. 162(m), as amended by P.L. 115-97, the law known as the Tax Cuts and Jobs Act. As amended, Sec. 162(m) disallows a deduction by any publicly held corporation for employee remuneration paid to any covered employee to the extent that the employee’s remuneration for the tax year exceeds $1 million.

The amendments changed the definition of covered employees, broadened which publicly held corporations are subject to the law, and eliminated the exception from the $1 million limit for remuneration payable on a commission basis and qualified performance-based compensation. They also contain…

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