Accounting for income taxes considerations of newly expanded section 162(m) excess compensation limitation

Accounting for income taxes considerations

The American Rescue Plan Act of 2021—signed by President Biden on March 11, 2021—includes changes to section 162(m) that expanded the definition of covered employees and modified the excess compensation deduction disallowance.


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There are accounting for income taxes considerations that companies need to consider when evaluating the impact of the American Rescue Plan Act of 2021.

Read an April 2021 report [PDF 80 KB] prepared by KPMG LLP: What’s News in Tax: Accounting For Income Taxes Considerations of the Newly Expanded Section 162(m) Excess Compensation Limitation 

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