Section 280G for Private Companies

Summary

This practice note discusses the main exceptions to the non-deductibility and excise tax provisions under I.R.C. §§ 280G and 4999 (Section 280G) available to private companies, with a focus on the so-called shareholder approval exception. This note also provides practical advice regarding other ways in which private companies can mitigate or eliminate the negative tax effects of Section 280G.