Here’s the intro of this Cooley Alert penned by Ali Murata and Michael Bergmann:
“In the last few days preceding President Donald Trump’s inauguration, the IRS under the Biden administration proposed regulations to implement amendments to Internal Revenue Code § 162(m) that were enacted in 2021 but will first become effective for taxable years beginning after December 31, 2026. The proposed regulations were published in the Federal Register on January 16, 2025, and any public comments on the proposal are due by March 17, 2025.
In light of the subsequent change in administration (and in the spirit of the regulatory freeze ordered by Trump on his first day in office), it is unclear whether the proposed regulations will progress or be adopted.
Regardless of whether final regulations are finally adopted, however, the changes to 162(m) effected by the 2021 amendments will apply to taxable years beginning after December 31, 2026 (unless those changes are revoked or otherwise modified). Accordingly, companies subject to 162(m) – generally only publicly held corporations and certain of their affiliates – should still understand the effect of those amendments.”
Authored by
Broc Romanek