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PRICE WATERHOUSE: IRS GUIDANCE OUT ON EXECUTIVE COMPENSATION RELIEF

 WASHINGTON, Jan. 3 /PRNewswire/ -- Taxpayers can establish performance goals through April 1 and still have related compensation exempt as performance based for all of 1994 if performance goals are met, Price Waterhouse benefits analysts said.
 The Internal Revenue Service (IRS) provided transition relief Dec. 21 relating to the cap on the deduction for executive compensation, one day after they released proposed regulations on transitional and definitional issues.
 Under the proposals, performance goals would have been required to be set in writing by company compensation committees before the services were performed, said Elaine Church, a Price Waterhouse benefits adviser.
 "Many taxpayers complained this provision precluded them from meeting the performance-based compensation exception for services provided during 1994, mainly because of the short 10-day notice given for action by the committee," Church said.
 The IRS relief allows all 1994 service-related compensation to meet the exception as long as a compensation committee establishes performance goals before April 1.
 The relief also states that when the committee establishes the goal, the period of services to which the goal relates must not begin before Jan. 1. Additionally, the goal's outcome must also last at least nine months after the date of compensation committee action.
 Price Waterhouse is committed to providing the ideas, information and advice that will help clients make better business decisions. Through a global network of firms practicing in 117 countries and territories, Price Waterhouse employees work together to provide accounting; auditing; tax planning and compliance; management and technology consulting; litigation support and business advisory services to corporations, individuals, non-profit organizations and government departments and agencies. The U.S. firm, with 106 offices and 12,995 men and women, is a vital part of the Price Waterhouse worldwide network.
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 /NOTE TO EDITORS: For an interview opportunity with a Price Waterhouse benefits adviser or more information, call the contact below./
 /CONTACT: Betsy L. Freeman, marketing communications manager of Price Waterhouse, 202-728-9781/


CO: Price Waterhouse ST: District of Columbia IN: FIN SU: ACC

DT-KW -- DC007 -- 8496 01/03/94 12:14 EST
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Publication:PR Newswire
Date:Jan 3, 1994
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