IRS Proposes Rules on Deduction Limits for Health Services Pay

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The Internal Revenue Service issued proposed rules (REG-106796-12) April 1 on the application of the $500,000 deduction limitation for remuneration provided by certain health insurance providers under tax code Section 162(m)(6).
“For taxable years beginning after Dec. 31, 2012, Section 162(m)(6) limits to $500,000 the allowable deduction for the aggregate applicable individual remuneration and deferred deduction remuneration attributable to services performed for a covered health insurance provider in a disqualified taxable year beginning after Dec. 31, 2012,” IRS said in the proposed rules.


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