Internal Revenue Code - IRC 409(a)

Gregory J. Cook, EA, CPA+ Accredited Tax Advisor Past President Alabama Society of Enrolled Agents Past President Alabama Association of Accountants

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.