Internal
Revenue Code - IRC 409(a)
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Gregory J. Cook, EA, CPA+ Accredited Tax Advisor Past President Alabama Society of Enrolled Agents Past President Alabama Association of Accountants |
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Treasury And IRS Issue Notice On Reporting And Withholding For Amounts Includible In Gross Income Under Internal Revenue Code (IRC) Section 409A
IR-2006-185, Nov. 30, 2006
WASHINGTON — Today Treasury and the IRS issued Notice 2006-100 providing guidance to employers and payers on their reporting and wage withholding requirements for calendar years 2005 and 2006 with respect to deferrals of compensation and amounts includible in gross income under IRC § 409A and relief from reporting deferrals that are not includible in income during those years. The notice supersedes Notice 2005-94.
Under the relief in the notice,
employers and other payers need not
report annual deferrals of
compensation that are not includible
in income under § 409A on Form W-2
or Form 1009-MISC for 2005 or 2006.
However, amounts includible in
income under § 409A for 2005 and
2006 must be reported on Form W-2 or
Form 1099-MISC, as appropriate.
Employers and payers were alerted
last year in Notice 2005-94 that
they might have to file amended
information returns to report
amounts includible in income for
2005. In addition, the notice
provides guidance on how to meet
income tax withholding requirements
for amounts includible in income
under § 409A for 2006. The notice
also provides guidance to service
providers on their income tax
reporting and tax payment
requirements for amounts includible
in gross income under § 409A for
2005 and 2006.The notice provides interim rules for 2005 and 2006 on calculating amounts includible in gross income under § 409A. These rules apply to service providers who must include amounts in income pursuant to § 409A and to employers or other payers who must report and withhold on the amount to be included in income under § 409A.
Treasury and the IRS issued Notice 2006-100 providing guidance to employers and payers on reporting and wage withholding under Internal Revenue Code Section 409A for calendar years 2005 and 2006.
Treasury, IRS Extend Documentation Deadline for 409A Compliance
IR-2007-157, Sept. 10, 2007
WASHINGTON — The Treasury Department and the Internal Revenue Service (IRS) announced today that taxpayers will have until Dec. 31, 2008, to bring documents into compliance with the final nonqualified deferred compensation regulations under section 409A of the Internal Revenue Code.
In April, Treasury and IRS issued final 409A regulations, which provided guidance regarding the requirements for deferral elections and payment timing under section 409A. Affected plans and arrangements were required to comply with the final regulations by Dec. 31, 2007. IRS Notice 2007-78 extends the document compliance deadline for one year and provides additional limited transition relief, but does not extend the Jan. 1, 2008, effective date of the final regulations.
Notice 2007-78 also announces that Treasury and the IRS anticipate issuing guidance containing a limited voluntary compliance program that will permit corrections of certain unintentional operational violations of section 409A.
The final regulations were in response to legislation enacted by Congress in 2004 to address concerns involving reported abuses of nonqualified deferred compensation plans.
News and Articles from Bara Business Center
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Greg Cook on the Recovery Act ... The Recovery Act was passed by Congress and signed into law by President Obama on February 17, 2009. The purpose of the $787 billion Recovery package is to jump-start the economy to create and save jobs. The Act specifies appropriations for a wide range of federal programs, and increases or extends certain benefits under Medicaid, unemployment compensation, and nutrition assistance programs. The legislation also reduces individual and corporate income tax collections (to an extent), and makes a variety of other changes to tax laws.
This Act will have far reaching consequences and we will be dealing with it for years to come (at least until 2018). Twenty-eight different agencies – such as the Departments of Education; Health and Human Services; and Energy – have been allocated a portion of the $787 billion in Recovery funds. Each agency develops specific plans for how it will spend its Recovery Act funds. The agencies then award grants and contracts to state governments or, in some cases, directly to schools, hospitals, contractors, or other organizations. The agencies are required to file weekly financial reports on how they are spending the money and their specific activities related to Recovery funds. Read more about The Recovery Act |
While Our Government Rolls the Dice with Deficit Spending ...
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