Tax code 162 m deductibility of executive compensation tax code 162 m deductibility of executive compensation section 162 m of the irs code places a 1 million dollar limit on the amount of deductible compensation that a company can pay to their ceo cfo and other three most highly paid executives. In the case of any year to which section 89 of the internal revenue code of 1986 does not apply former section 162 m 2 b of such code shall be applied by substituting any nondiscrimination requirements otherwise applicable for the requirements of section 89 of such code. How to identify the expanded group of employees who are covered by new section 162 m.
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