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IRS Issues Proposed Regulations on the Expanded Definition of “Covered Employee” Under Code Section 162(m)

By Lori Basilico, Ed Razim & Emily Davidson on January 29, 2025
Posted in Regulatory

On January 16, the Internal Revenue Service (IRS) published proposed regulations (90 FR 4691) under Section 162(m) of the Internal Revenue Code. Section 162(m) generally limits the deductibility of compensation paid in any tax year to covered employees of a publicly held corporation to $1 million.

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