January 24, 2018
Most State Tax Laws Conform to Section 162(m)
– Broc Romanek
Here’s a teaser for this memo by FW Cook:
While the performance-based compensation exception to the $1 million compensation limit under Section 162(m) for “covered employees” is a thing of the past (absent grandfathered contracts) for federal income tax purposes, practitioners are realizing that Section 162(m) may continue to be a consideration for state taxes. For administrative ease, the great majority of states conform many elements of their state tax codes to the federal tax code. However, it is rare for any state to conform to the federal code in all respects.