In Revenue Ruling 2008-13, issued on February 21, 2008, the IRS held that incentive pay cannot qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code if all or a portion can be paid upon the executive’s involuntary termination without cause, voluntary termination for good reason or retirement, even if the executive continues in service and the incentive is actually paid upon attainment of the pre-stated performance goal.
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RegisterIRS 162(m) ruling requires review of incentive pay arrangements
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USA
March 4 2008
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