On August 21, 2018, the IRS issued Notice 2018-68, which provides initial guidance on two aspects of the amendments to Section 162(m) of the Internal Revenue Code made by the Tax Cuts and Jobs Act:

  • how to identify the expanded group of employees who are covered by new Section 162(m); and
  • how a plan or agreement can qualify as grandfathered from new Section 162(m).

This memorandum summarizes this guidance, as well as the additional aspects of new Section 162(m) about which the IRS is seeking comment. Read the full memo here.