Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
A large portion of the rise in executive pay over the last two decades has come in the form of deferred compensation. Stock options, annuities, and life insurance policies, in addition to more traditional nonqualified deferred compensation plans, are all common means of compensating highly paid executives.
This course addresses the numerous tax rules that reach deferred compensation arrangements and often discourage their use, including I.R.C. sections 162(m), 409A, and 280G, It also addresses the taxation of common incentive based compensation arrangements such as stock appreciation rights and payments triggered upon changes in control. Finally, it will briefly address SEC rules such as the "say for pay", "pay ratio", and "performance based compensation rules."
Publication Date: May 2022
Designed For
Tax practitioners at all levels who advise on the taxation of executive compensation.
Topics Covered
- Section 409A's penalty provisions affecting deferred compensation
- Section 162(m) and section 280G
- SEC rules applying to executive compensation, including pay ratio, say on pay, and pay for performance
- Tax consequences of compensation-based life insurance policies and annuities
- Tax consequences of various perquisites
- Miscellaneous Executive Compensation
Learning Objectives
- Differentiate the tax treatment of various types of employee stock options
- Identify situations where IRC rules may limit or disallow deduction of executive compensation payments
- Describe situations in which penalty taxes may apply to payments received by executives
- Recognize how to gain familiarity with pay ratio and pay for performance rules
- Identify the objective of executive compensation
- Recognize what year Section 409A was enacted to address perceived abuses by senior executives of deferred compensation programs
- Identify which IRS form is required to be filed with respect to employer provided life insurance
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of executive compensation.
Advance Preparation
None
Instructor
Jennifer Kowal
Jennifer Kowal, JD, has been a tax professor and the director of the graduate tax program at Loyola Law School in Los Angeles since 2003. Loyola’s graduate tax program offers an LL.M. in Taxation for attorneys and a Master in Tax Law for non-lawyers. Professor Kowal teaches courses in advanced income taxation, income tax timing issues, corporate taxation, and tax research, among others. Prior to teaching at Loyola, Professor Kowal taught in the International Tax Program at Harvard Law School.
She also practiced law with the firms of Irell & Manella in Los Angeles and Ropes & Gray in Boston, advising clients on the taxation of various business transactions, including cross-border, partnership and corporate structures. Professor Kowal holds a BS in Accounting with distinction from the University of Kansas, and a JD from UCLA School of Law, where she was a member of the Order of the Coif.