Morgan, Lewis & Bockius LLP partner Mims Maynard Zabriskie spoke with Law360 on how the firm is counseling clients on the new tax deduction limits, especially for foreign companies that may never have had to think about tax restrictions on executive compensation in the past.
“We’ve been advising them that they’re going to have to determine who their five most highly paid employees are each year and keep an ongoing list,” she said in the article. “And if any of those individuals has U.S.-source income or if the U.S. company is trying to take a tax deduction for that person’s compensation, then the U.S. company will be subject to the 162(m) deduction limit.”