Internal Revenue Code of 1986 Archives

Tax Cuts and Jobs Act of 2017: Impact on Executive Pay of Tax-Exempt Organizations

by McDermott Will & Emery | Aug 28, 2018 | Employee Benefits, Executive Compensation

The Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) made some significant changes to the executive pay area for tax-exempt organizations with the imposition of a new excise tax on certain amounts paid to some employees of the tax-exempt organization. Imposing taxation in areas which previously had no such result will warrant tax-exempt organizations reviewing their compensation structures in light of the new rules to ensure not only an understanding of the new rules but to evaluate feasible options in minimizing any taxes.

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Internal Revenue Service Updates Golden Parachute Payments Audit Technique Guide, Signaling Key Items IRS May Review on Audit

by Andrew Liazos, Joseph K. Urwitz and McDermott Will & Emery | Aug 24, 2017 | Employee Benefits, Executive Compensation

In early 2017, the IRS updated its Golden Parachute Payments Audit Technique Guide for the first time since its 2005 issuance. While intended as an internal reference for IRS agents conducting golden parachute examinations, the Audit Technique Guide offers valuable insight for both public and private companies, and recipients of golden parachute payments, into how IRS agents are likely to approach golden parachutes when conducting an audit.

ESOPs and Artisan Distilling

by Marc Sorini | Jul 6, 2017 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Retirement Plans

Employee Stock Ownership Plans (ESOPs) are becoming a popular—and tax effective—way for companies to manage succession planning. When structured properly an ESOP can provide huge financial benefits to companies and their employees alike. There have been several craft brewers who have taken advantage of the ESOP structure in the past year, and we expect this trend to pique the interest of craft distilleries. In this article, originally published in Artisan Spirit, Marc E. Sorini and Emily Rickard explore at a very high level some of the issues involved with starting and maintaining a craft distillery ESOP.

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IRS Extends Year-End Deadline for Pension Plan Amendments Under Code Section 436

by McDermott Will & Emery | Dec 22, 2011 | Retirement Plans

by Diane M. Morgenthaler, Natalie M. Nathanson and Maureen O’Brien

The IRS recently extended the deadline for defined benefit plan sponsors to adopt amendments to comply with Section 436 of the Internal Revenue Code of 1986, as amended (the Code). Code Section 436 was added by the Pension Protection Act of 2006 (PPA) and contains limitations on benefit payments and accruals for defined benefit plans that do not meet the funding targets required by PPA.

Please click here for a discussion of the new deadlines.