[Federal Register Volume 61, Number 25 (Tuesday, February 6, 1996)]
[Rules and Regulations]
[Pages 4349-4350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2323]



Internal Revenue Service

26 CFR Part 1

[TD 8650]
RIN 1545-AS23

Disallowance of Deductions for Employee Remuneration in Excess of 
$1,000,000; Correction

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to final regulations.


SUMMARY: This document contains corrections to final regulations (TD 
8650) which were published in the Federal Register on Wednesday, 
December 20, 1995 (60 FR 65534), and relates to the disallowance of 
deductions for employee remuneration in excess of $1,000,000.

EFFECTIVE DATE: December 20, 1995.

FOR FURTHER INFORMATION CONTACT: Robert Misner or Charles T. Deliee at 
(202) 622-6060 (not a toll-free number). 

[[Page 4350]]



    The final regulations that are the subject of these corrections are 
under section 162(m) of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 8650) contain errors that 
are misleading and in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 8650), 
which was the subject of FR Doc. 95-30869, is corrected as follows:

Sec. 1.162-27  [Corrected]

    1. On page 65538, column 1, Sec. 1.162-27 (c)(3)(ii)(A), line 2, 
the language ``3121(a)(1) through section 3121(a)(5)(D)'' is corrected 
to read ``3121(a)(5)(A) through section 3121(a)(5)(D)''.
    2. On page 65543, column 2, Sec. 1.162-27 (e)(4)(i), the last 
sentence is corrected to read as follows:
* * * * *
    (e) * * *
    (4) * * * (i) * * * The material terms include the employees 
eligible to receive compensation; a description of the business 
criteria on which the performance goal is based; and either the maximum 
amount of compensation that could be paid to any employee or the 
formula used to calculate the amount of compensation to be paid to the 
employee if the performance goal is attained (except that, in the case 
of a formula based, in whole or in part, on a percentage of salary or 
base pay, the maximum dollar amount of compensation that could be paid 
to the employee must be disclosed).
* * * * *
    3. On page 65544, column 3, Sec. 1.162-27 (e)(5), second line from 
the bottom of the paragraph, the language ``to the increase in the 
stock of the'' is corrected to read ``to the increase in the value of 
the stock of the''.
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 96-2323 Filed 2-5-96; 8:45 am]