The IRS issues final regulations on executive compensation deductions. The tax code doesn’t allow a publicly held corporation to deduct employee remuneration paid to a covered employee when it exceeds $1 million for the year. The regs reflect changes made by the Tax Cuts and Jobs Act, which amended definitions of covered employee, publicly held corporation and applicable employee remuneration. The regs retain the approach of the proposed regs and, generally apply to tax years starting on or after they’re published in the Federal Register. However, taxpayers may apply them to a tax year starting after Dec. 31, 2017, if the taxpayer applies them consistently to that year and those that follow. Call or visit our website for more information! www.mjscpa.com/
