Correcting § 409A(a) Failures


The IRS has issued transition relief and guidance for correcting operational failures under nonqualified deferred compensation plans. Following the methods outlined in the guidance will avoid income inclusion under § 409A(a).


The second section of the guidance explains how to obtain relief for unintentional operational failures corrected in the same taxable year as the failure occurs. Relief is not available for intentional failures or in the case of the exercise of a stock right that would otherwise result in a failure to comply with § 409A. The guidance is contained in Notice 2007-100.

SPONSORED REPORT

Taking stock of artificial intelligence

Artificial intelligence is either the greatest thing to ever happen to human work or the dread of our existence. This independently written report explores how AI will reshape the workplace and how analytically minded individuals can stand out.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.