In a recent Revenue Ruling, No. 2008-13, the IRS ruled that a compensation award payable upon the employee?s retirement, termination without cause by the employer, or resignation with good reason by the employee, without regard to the achievement of performance goals, is not considered ?qualified performance-based compensation? under Section 162(m) of the Internal Revenue Code of 1986 (the ?Code?). This Revenue Ruling and a prior private letter ruling on this question reflect a change in the IRS?s position.
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