Bill That Would Correct Inadvertent Tax Hike Passes House


This month, the California House of Representatives approved Assembly Bill 1173, which is intended to provide partial relief from the additional 20 percent state penalty tax for violations of the Internal Revenue Code Section 409A. Hopefully the bill will be approved by the Senate as the action is long overdue. Since Section 409A was adopted in 2004, the Department of the Treasury and the Internal Revenue Service have issued thousands of pages of guidance interpreting and applying the legislation. Despite the volume of regulatory guidance that has been issued under Section 409A, the application of this complicated legislation remains unclear.

Bill 1173 was inspired by a proposal that Loeb & Loeb partner Marla Aspinwall wrote and presented during the Sacramento Delegation of the State Bar Tax Section last February. Ms. Aspinwall has been a leader in building private sector support for the bill and this article examines the critical issues that it addresses.

Originally published in May 31, 2013 edition of the Los Angeles Daily Journal.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Loeb & Loeb LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.