Companies may wish to take certain steps before January 1, 2018, with respect to 2017 annual bonuses.

As has been widely reported, Congress has passed tax reform legislation lowering 2018 corporate tax rates and thus potentially increasing the relative value of 2017 corporate deductions. Accordingly, it may be advantageous to take steps prior to year-end to move deductions with respect to 2017 annual bonuses into the 2017 tax year (rather than deducting these bonuses in 2018 when paid). While the timing and availability of deductions with respect to bonus payments (as well as the benefit of accelerating these deductions) will vary by company, some or all of the following steps prior to year-end may be effective in creating 2017 deductions with respect to these bonuses...