IRS Clarifies Its $1 Million Tax Deduction Limit on Executive Pay

IRS Notice 2018-68 has much-anticipated guidance on changes to the deductibility of executive compensation under tax code Section 162(m). A $1 million limit on deductible executive pay, including performance-based awards, was part of the tax act passed at the end of 2017. But issues such as grandfathering of existing variable-pay plans have created confusion.
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