Guidance on Tax Code Section 162(m) Issued by IRS

Fulcrum Partners Executive Benefits News

The IRS has issued guidance on Section 162(m) of the Federal Tax Code as amended by P.L. 115-97, the law generally known as the, “Tax Cuts and Jobs Act.” You can read the notice, which was published August 21, 2018, in entirety, here: Notice 2018-68.

The information released this week primarily focuses on the amended rules for identifying covered employees and the operation of the grandfather rule, including when a contract will be considered materially modified so that it is no longer grandfathered.

As noted in the guidance, there are still further issues to be clarified, and, “The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) anticipate that further guidance on the amendments made by section 13601 of the Act will be issued in the form of proposed regulations, which will incorporate the guidance provided in this notice.”

Helpful within the guidance document are the fifteen examples provided that analyze and explain hypothetical situations and the appropriate resolution. As further commentary becomes available, we will share it here on Fulcrum Partners News.

In PDF format, Guidance on the Application of Section 162(m) IRS Tax Notice 2018-68 is available to print or download from the Resources page of the Fulcrum Partners website, under the section heading, “Whitepapers”.

Securities offered through Valmark Securities, Inc. Member FINRA, SIPC, 130 Springside Drive, Akron, OH 44333-2431, Tel: 1-800-765-5201. Investment Advisory Services offered through Valmark Advisers, Inc., which is a SEC Registered Investment Advisor. Fulcrum Partners LLC is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.