16 Jan 2025
💰Proposed IRS Regulations on Employee Remuneration Deductions
Certain Employee Remuneration in Excess of $1,000,000 Under Internal Revenue Code Section 162(m)
Summary
This document sets forth proposed regulations under section 162(m) of the Internal Revenue Code, which limits the deduction for certain employee remuneration in excess of $1,000,000 for Federal income tax purposes. These proposed regulations implement the amendments made to section 162(m) by the American Rescue Plan Act of 2021. These proposed regulations would affect publicly held corporations.
Agencies
- Treasury Department
- Internal Revenue Service
Business Impact
$$ - Med
The proposed regulations under section 162(m) limit deductions for employee remuneration exceeding $1 million, affecting publicly held corporations. This impacts financial reporting and tax strategy, necessitating compliance adjustments for businesses with high executive compensation.