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The Tax Cuts and Jobs Act of 2017 (Act) introduced numerous significant changes to Section 162(m) of the Internal Revenue Code (IRC).
The recent US tax reform law adopts Internal Revenue Code Section 83(i), which will allow certain private company employees to defer federal income tax on eligible stock options and restricted stock units for up to five years following their respective exercise or settlement. To learn more about Section 83(i), including how it could be useful for bridging the gap between when an employee is subject to income tax and when the employee’s shares can be liquidated, please read our recent LawFlash.
The tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (Act), signed into law on December 22, 2017, modifies the Internal Revenue Code (Code) in a way that impacts many qualified plan (and 403(b) plan) hardship withdrawal provisions. The Act adds a paragraph to Section 165 of the Code restricting the deduction for casualty losses to those losses that are attributable to a federally declared disaster.
Internal Revenue Code Section 162(m) imposes a $1 million limit on the amount most public companies can deduct for compensation paid to any “covered employee.” The Tax Cuts and Jobs Act (the Act) significantly changes Section 162(m) by eliminating the exception for “qualified performance-based compensation,” expanding the “covered employee” group and expanding the definition of “publicly held corporation.”
President Donald Trump signed the Federal Register Printing Savings Act of 2017 (the Act) on January 22 to end the two-day government shutdown.
The recent tax reform legislation, HR 1, makes significant changes to the treatment of fringe benefits under the Internal Revenue Code, most of which are effective for taxable years beginning on and after January 1, 2018. For more information about these changes, please read our LawFlash How Tax Reform Will Change the Treatment of Fringe Benefits.
The recent US tax reform makes Roth IRA conversion recharacterizations a thing of the past, but is silent on whether recharacterizing 2017 Roth IRA conversions in 2018 will be permitted.
Earlier today the IRS issued new withholding tables for 2018, along with an explanatory news release and a frequently asked questions document.
To better understand the wide-ranging implications of the new tax law, check out Morgan Lewis’s resource center on Navigating US Tax Reform.