Tax Reform Thursdays: Section 162(m) Compensation Deduction Limitations
Tax Reform Thursdays: Section 162(m) Compensation Deduction Limitations
WEBCAST

Tax Reform Thursdays: Section 162(m) Compensation Deduction Limitations

On December 16, 2019, the Treasury and IRS released proposed regulations addressing the changes made to section 162(m) of the Internal Revenue Code as part of the 2017 tax law commonly referred to as the Tax Cuts and Jobs Act (TCJA). Section 162(m) generally disallows a deduction for compensation paid in any tax year to a covered employee of a publicly held corporation that exceeds $1 million. The TCJA and these proposed regulations significantly expanded the scope and application of section 162(m) by amending key definitions and eliminating frequently used exceptions. While the guidance has shed additional light on how to apply these changes and their implications, there remain open questions and areas that will present new challenges for taxpayers.

KPMG LLP (KPMG) is pleased to invite you to watch this 90-minute webcast that examines these much-anticipated regulations. Senior-level KPMG Tax professionals from KPMG’s Washington National Tax and Global Reward Services practices:

  • Review the changes made to section 162(m) by the TCJA
  • Examine the implications associated with expanded definitions of corporations subject to section 162(m) limitations; covered employees of affected corporations; and compensation that must be taken into account
  • Discuss grandfathering and other transition relief opportunities
  • Address action items corporations should consider in implementing these provisions.
Robert Delgado

Robert Delgado

Principal in Charge, Compensation & Benefits, Washington National Tax, KPMG US

Carly Rhodes

Carly Rhodes

Senior Manager, Compensation & Benefits, Washington National Tax, KPMG US

Eric Schecter

Eric Schecter

Managing Director, Tax, Global Reward Services, KPMG US

Terri Stecher

Terri Stecher

Director, Compensation & Benefits, Washington National Tax, KPMG US

Read more about the section 162(m) regulations

January 27, 2020

Widening the Net—Proposed Regulations Expand Scope of $1 Million Section 162(m) Deduction Limitation on Certain Executive Compensation Paid by Public Companies | Article by KPMG professionals in Washington National Tax's Compensation & Benefits Group