The 2017 tax reform (commonly referred to as the Tax Cuts and Jobs Act or the TCJA) significantly changed the tax treatment of various executive compensation and employee fringe benefits provided by employers, including:
- Limiting or eliminating tax deductions on employer meals and entertainment expenses under IRC Section 274
- Eliminating tax deductions on employer-provided qualified transportation fringe (QTF) and other commuting benefits under IRC Section 274
- Significantly expanding the IRC Section 162(m) annual $1 million deduction limitation on the compensation of any covered employee of a publicly held corporation
- Adding a new excise tax (IRC Section 4960) on tax-exempt organizations that provide executive compensation in excess of certain limits