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Email New proposed regulations clarifying perceived ambiguities in the application of the $1 million limit on deductible compensation for covered employees, including the transition rule applicable to privately held corporations that become publicly held, were recently published by the Internal Revenue Service. Companies should review their incentive compensation arrangements to determine whether these proposed regulations, once finalized, will affect such arrangements, and, if so, how such arrangements may need to be modified in order to comply with Section 162(m). https://www.cadwalader.com/resources/clients-friends-memos/irs-issues-proposed-regulations-to-clarify-application-of-section-162m