"IRC Section 409A"

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Since our October 25, 2010 blog titled, “Time Running Out to Obtain Maximum Relief for Correcting 409A Document Failures under IRS Notice 2010-6”, the IRS published Notice 2010-80 on November 30, 2010, which expands the scope of the document correction program under Notice 2010-6 and provides additional transition relief for employers to amend arrangements intended to comply with the requirements of Section 409A of the Internal Revenue Code (“409A”). As we previously reported, document corrections under Notice 2010-6 that are implemented before 2011 are treated as having been corrected on January 1, 2009, which can mean that any requirement of income inclusion under 409A as a condition of the relief would generally not apply. Therefore, with only ten days left in 2010, employers should strongly consider amending noncompliant arrangements that are eligible for correction under Notice 200-6 (as modified by Notice 2010-80) to take advantage of the maximum possible relief. Continue Reading Expanded Relief for Correcting 409A Document Failures under IRS Notice 2010-80

With less than ten weeks remaining in 2010, companies should once again consider reviewing their compensatory plans and agreements to ensure that such agreements are in documentary compliance with Internal Revenue Code section 409A (“409A”). 409A is the federal tax statute governing the taxation of nonqualified deferred compensation arrangements. While all compensation agreements should be prepared either to be exempt from or in compliance with 409A, the Internal Revenue Service has provided additional impetus for companies to re-review their compensation plans and agreements.Continue Reading Time Running Out to Obtain Maximum Relief for Correcting 409A Document Failures under IRS Notice 2010-6

Yes, sadly this is yet another blog posting dealing with that infernal Internal Revenue Code Section 409A. But, my musings here are not about the intricacies of 409A and the various tax issues it presents or even the fact that the year-end compliance deadline is now less than 125 days away! Rather my focus is on whether this pervasive tax statute also has the power to complicate securities law compliance as well.Continue Reading The Long Arm of 409A

IRS Notice 2007-86 extended the deadline for employers to bring documents into compliance with the final regulations of Section 409A of the Internal Revenue Code (the “Code”) until December 31, 2008.  With less than six months remaining in the year, we strongly encourage all employers to now take action to implement a Section 409A review process in order to allow for sufficient time to assess compliance alternatives and prepare amendments to implement any necessary changes.  Because the amendment process may generally require Board action and employee consent, advance planning for the steps that need to be taken before the end of the year becomes even more crucial.Continue Reading Reminder: Act Now! 409A Transition Relief Set to Expire December 31, 2008