Alerts

Legislation Introduced to Limit Deferrals of Compensation from Many Offshore Corporations

October 19, 2007

Legislation was introduced yesterday in the Senate and the House of Representatives, the “Offshore Deferred Compensation Reform Act of 2007," to limit the ability of a cash-basis taxpayer to defer compensation earned from many non-U.S. corporations. The legislation, if enacted, would be effective with respect to deferrals for years beginning after December 31, 2007. Existing deferrals, and earnings on existing deferrals, would not be affected by the new legislation.