Since the enactment of Sec. 280G of the Internal Revenue Code as part of the Tax Reform Act of 1984 (Division A, Deficit Reduction Act of 1984, P.L. 98–369) and the issuance of the final Treasury regulations in 2003, the landscape of executive compensation arrangements has changed significantly. In part, arrangements have developed in response to the use of more sophisticated employer structures, changes in capital markets, and demands of management. The effect is that applying Sec. 280G in certain situations is more challenging because it does not address or contemplate considerations that now arise 40 years post–enactment. This item discusses certain issues that may arise in evaluating the current landscape, but other issues may arise as well. Determining the Sec. 280G consequences requires careful analysis of organizational structure as well as payments and benefits provided under executive compensation arrangements. READ MORE