Sec. 503. Expansion of denial of deduction for certain excessive employee remuneration
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/bill/114/s/2677/is/section-503A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 162(m) is amended— by striking covered employee each place it appears in paragraphs
(1)and
(4)and inserting covered individual , and by striking such employee each place it appears in subparagraphs
(A)and
(G)of paragraph
(4)and inserting such individual . Paragraph
(3)of section 162(m) is amended to read as follows: For purposes of this subsection, the term covered individual means any individual who is an officer, director, or employee of the taxpayer or a former officer, director, or employee of the taxpayer. . Section 48D(b)(3)(A) is amended by inserting (as in effect for taxable years beginning before January 1, 2016) after section 162(m)(3) . Section 409A(b)(3)(D)(ii) is amended by inserting (as in effect for taxable years beginning before January 1, 2016) after section 162(m)(3) . Paragraph
(4)of section 162(m), as amended by subsection (a), is amended by striking subparagraph
(B)and by redesignating subparagraphs
(C)through
(G)as subparagraphs
(B)through (F), respectively. Section 162(m)(5) is amended— by striking subparagraphs (B), (C), and
(D)thereof in subparagraph
(E)and inserting subparagraphs
(B)and
(C)thereof , and by striking subparagraphs
(F)and
(G)in subparagraph
(G)and inserting subparagraphs
(E)and
(F). Section 162(m)(6) is amended— by striking subparagraphs (B), (C), and
(D)thereof in subparagraph
(D)and inserting subparagraphs
(B)and
(C)thereof , and by striking subparagraphs
(F)and
(G)in subparagraph
(G)and inserting subparagraphs
(E)and
(F). Paragraph
(4)of section 162(m), as amended by subsection
(a)and paragraph
(1)of this subsection, is amended by striking subparagraph
(B)and redesignating subparagraphs
(C)through
(F)as subparagraphs
(B)through (E), respectively. Section 162(m)(5), as amended by paragraph (1), is amended— by striking subparagraphs
(B)and
(C)thereof in subparagraph
(E)and inserting subparagraph
(B)thereof , and by striking subparagraphs
(E)and
(F)in subparagraph
(G)and inserting subparagraphs
(D)and
(E). Section 162(m)(6), as amended by paragraph (1), is amended— by striking subparagraphs
(B)and
(C)thereof in subparagraph
(D)and inserting subparagraph
(B)thereof , and by striking subparagraphs
(E)and
(F)in subparagraph
(G)and inserting subparagraphs
(D)and
(E). Paragraph
(2)of section 162(m) is amended to read as follows: For purposes of this subsection, the term publicly held corporation means any corporation which is an issuer (as defined in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ))— the securities of which are registered under section 12 of such Act ( 15 U.S.C. 78l ), or that is required to file reports under section 15(d) of such Act ( 15 U.S.C. 780(d) ). . Section 162(m) is amended by adding at the end the following new paragraph: The Secretary may prescribe such guidance, rules, or regulations, including with respect to reporting, as are necessary to carry out the purposes of this subsection. . Paragraph
(6)of section 162(m) is amended by striking subparagraph (H). The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
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Sec. 503
Expansion of denial of deduction for certain excessive employee remuneration
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