• IRS Formalizes Position on Application of Section 162(m) Deduction Limitation to Incentive Compensation Payable On Involuntary Termination or Retirement
  • April 4, 2008 | Authors: Leslie A. Klein; Steven B. Lapidus; Ian A. Herbert
  • Law Firms: Greenberg Traurig, LLP - Chicago Office; Greenberg Traurig, LLP - East Palo Alto Office; Greenberg Traurig, LLP - Miami Office; Greenberg Traurig, LLP - McLean Office
  • Among these topics was the release, on January 25, 2008, by the Internal Revenue Service of a private letter ruling (PLR 200804004) that concluded that compensation that was intended to be "qualified performance-based compensation" would not be exempt from the section 162(m) limitations if the compensation would be paid, without regard to the satisfaction of relevant performance goals, if the employment of the executive to whom the amounts were paid was terminated involuntarily by the employer other than for "cause" or by the executive for "good reason."