• IRS Releases Final Regulations Clarifying Requirements under Section 162(m)
  • April 30, 2015 | Authors: Louis S. Nunes; Kelly C. Simoneaux
  • Law Firm: Jones Walker LLP - New Orleans Office
  • Section 162(m) of the Internal Revenue Code (IRC) and the regulations thereunder (Section 162(m)) subjects publicly held corporations to an annual $1 million deduction limit for compensation paid to certain covered employees. This deduction limit, however, does not apply to compensation that qualifies as performance-based compensation under Section 162(m) or that is paid following a corporation’s initial public offering (IPO) in accordance with the transition exception under Section 162(m).