14 January 2025 IRS issues proposed rules on deduction limit under IRC Section 162(m) for employee compensation over $1m The IRS and Treasury Department on January 14, 2025, issued proposed regulations (REG-118988-22) under IRC Section 162(m), concerning the deduction limitation for covered employee compensation in excess of $1m for publicly held corporations. The proposed rules are intended to implement changes made by the American Rescue Plan Act that expand the scope of covered employees. The statutory changes are applicable to tax years beginning after December 31, 2026. A Tax Alert is forthcoming.
Document ID: 2025-0231 | ||