Andrew Liazos presented on 162(m) deduction limitations and transition rules at NYU’s 77th Institute on Federal Taxation. Amongst other topics, he discussed key changes for employers under the 2017 Tax Cuts and Jobs Act, the guidance provided under Notice 2018-68 and the potential impact of such changes on incentive compensation practices.

Section 162(m) - $1 Million Deduction Limit Prior Law -

..No deduction limit for performance-based compensation

..Compensation paid to CFO not subject to $1 million limit

..Status as a covered employee determined on an annual basis

- CEO and three other most highly compensated executive officers employed at year end

..No carryover status of covered employee status

..Only covers corporations with publicly traded equity securities