Client Alert: IRS Reverses Position under Section 162(m) Regarding “Good Leaver” Impact on Performance-Based Compensation Provisions
On January 25, 2008, the IRS released a private letter ruling reversing previously stated positions regarding the impact of certain "good leaver" provisions on performance-based compensation arrangements under Section 162(m) of the Internal Revenue Code. In response to public concern raised in response to this private letter ruling, the IRS has informally indicated that further guidance will be forthcoming.