On August 21, 2018, the IRS released Notice 2018-68 (the “Notice”), which provides initial guidance on certain amendments to Section 162(m) of the Internal Revenue Code which were included in the Tax Cuts and Jobs Act passed in December 2017 (“TCJA”). Most notably, the Notice provides additional interpretive guidance on the identification of covered employees and attempts to clarify open questions with respect to the application of the transition relief applicable to compensation paid pursuant to written binding contracts in effect as of November 2, 2017 that have not been materially modified after such date (commonly referred to as the “grandfather rule”).
August 29, 2018
