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.
|