IRS, Section 409A | JD Supra Law News

A Cautionary Tale Under Code § 409A: Case Evidences IRS' Willingness To Seek 409A Penalties For Discount Options

by Janet Lowder | Womble Carlyle Sandridge & Rice, PLLC on 4/22/2013

The United States Court of Federal Claims recently issued an opinion confirming that § 409A of the Internal Revenue Code of 1986 applies in the context of discount stock options. The case, Sutardja v. United States, is one of...more

Court Of Federal Claims Upholds 409A "Gotcha"

by Kevin Wiggins | Saul Ewing LLP on 4/10/2013

If your company has been cavalier about Internal Revenue Code Section 409A, you should reconsider. In a recent opinion by the United States Court of Federal Claims, the IRS scored the first points – more than $5 million of...more

Court Affirms Discounted Stock Options Are Deferred Compensation Subject to Section 409A

by Mary Hevener, Daniel Hogans, Eric P. Sarabia | Morgan Lewis on 3/21/2013

Court of Federal Claims agrees with the IRS position that section 409A applies to discounted stock options; holding is important for compensatory stock option grants. On February 27, the U.S. Court of Federal Claims...more

More On Discounted Stock Options Under Section 409A

by Angela Bohmann | Leonard, Street and Deinard - Employee... on 3/12/2013

My colleague Jeff Cairns blogged about a recent court case confirming the IRS’s position that discounted stock options can be considered noncompliant nonqualified deferred compensation arrangements under Section 409A of the...more

Section 409A Tax Assessed An Discounted Stock Options – Taxpayer Sues For Refund In Federal Court Of Claims

by Jeffrey P. Cairns | Leonard, Street and Deinard - Employee... on 3/8/2013

Code Section 409A which was effective in January 1, 2005, provides strict rules that must be applied to most deferred compensation arrangements accruing benefits after the effective date. Failure to comply with the Code and...more

Year-End Deadline Approaching for Code Section 409A Corrections

by Duane Morris LLP on 11/30/2012

Employers should be aware that December 31, 2012, is the Internal Revenue Service's (IRS) deadline for correcting certain documentary violations under Internal Revenue Code Section 409A ("Section 409A"). Specifically,...more

Expiration of 409A Correction Period Regarding the Timing Requirement to Execute a Release Agreement

by John J. Heber | Manatt, Phelps & Phillips, LLP on 11/30/2012

The payment of severance in the event of a termination of employment is often conditioned on the execution of a release agreement. This requirement may violate the documentary requirements of Code Section 409A ("409A") if the...more

409A Update: Employment Agreements Requiring Executed Releases May Need to Be Amended by December 31

by Randall I. Cherkas, Michael J. Crumbock | Pepper Hamilton LLP on 11/26/2012

It is standard practice that employment agreements condition payment of severance benefits or other separation compensation on the employee executing a general release of claims against the employer. However, unless...more

Deadline Approaching for Section 409A Year-End Correction

by Beth Alcalde, Ian L. Minkin, Leanne Reagan, Peter E. Salomon | Akerman Senterfitt on 11/26/2012

Section 409A Year-End Correction Deadline: Compensation arrangements such as employment or severance agreements, that provide for payments that are contingent on the execution of a release, must be brought into compliance...more

Employment Contracts and Severance Agreements Should be Reviewed and May Need to be Amended by December 31 to Comply with Section...

by Dan S. Brandenburg, Joanne G. Jacobson | Saul Ewing LLP on 11/20/2012

Severance agreements and employment contracts with release of claims provisions may violate 409A of the Internal Revenue Code. Bad release provisions may be fixed, penalty-free, before December 31, 2012. Most severance...more

Relief for Correcting Certain Internal Revenue Code Section 409A Failures Expires This Year

by Proskauer Rose LLP on 11/16/2012

The Treasury Department and the IRS have provided favorable transition relief for correcting arrangements that impermissibly condition the payment of nonqualified deferred compensation on a service provider's completion of...more

Section 409A Transition Relief Deadline Quickly Approaching

by Christopher K. Buch, Daniel B. Lange | Katten Muchin Rosenman LLP on 11/14/2012

As the end of the year approaches, important transition relief from penalties and excise taxes imposed by Section 409A of the Internal Revenue Code (the Code) is about to expire. If an employer has an employment agreement or...more

Benefits Update, No. 4, November 2012: Deadline to Correct 409A-Covered Documents Involving Employee Releases Is December 31, 2012

by Callan G. Carter | Fisher & Phillips LLP on 11/13/2012

Internal Revenue Code Section 409A governs deferred compensation, which includes, with some exceptions, practically all agreements or plans in which an agreement is made in one year to pay an amount in a later year. Its most...more

Year-end Deadline for Correcting Section 409A Deferred Compensation Arrangements Conditioned on Employee Release or Covenant

by Peter J. Hunt | Pillsbury Winthrop Shaw Pittman LLP on 11/12/2012

By December 31, 2012, all deferred compensation arrangements in which payment is contingent on employee action, such as execution of a release of claims, must either include payment-timing restrictions that comport to IRS...more

McAfee & Taft EmployerLINC Employee Benefits Law Alert: Year-end IRS deadline looms for correcting release language in 409A...

by McAfee & Taft on 11/9/2012

Employers with employment agreements, severance policies, and other non-qualified deferred compensation agreements that contain language conditioning any payment on employee action, such as the execution of a release of...more

409A Transition Relief Ends December 31 for Certain Severance and Other Employment Agreements

by King & Spalding on 10/31/2012

Employment, change in control, and severance agreements, as well as severance and deferred compensation plans, often condition payment upon the execution of a release or a noncompete or other employment-related condition. Any...more

Deadline Approaching for Amending Compensation Arrangements to Comply with Internal Revenue Code Section 409A

by Miller & Martin PLLC on 10/26/2012

Employers with employment, severance or other compensation arrangements with their employees should be aware the IRS has taken the position agreements that provide for payments, such as severance payments, that will be made...more

Opportunity to Amend Certain Severance-Related Release Agreements to Comply with Section 409A Expires at Year End

by Loeb & Loeb LLP on 10/26/2012

Companies commonly condition the payment of severance benefits upon the terminated individual's execution of an agreement containing a release of claims against the employer. Many release provisions permit a former employee...more

December 31 Deadline for Correcting Release of Claims Provisions that Fail to Comply with Section 409A

by Ropes & Gray LLP on 10/24/2012

Employers preparing for year-end compliance efforts should be aware of a December 31, 2012 deadline for correcting a common problem in compensation arrangements subject to Section 409A of the Internal Revenue Code. The...more

Section 409A Document Correction Relief: Take the Final Bite of the Apple before December 31st

by Mintz Levin - Employment, Labor & Benefits on 10/24/2012

Background - Section 409A of the Internal Revenue Code (Section 409A) regulates the payment of non-qualified deferred compensation. If a plan or agreement is not otherwise exempt from Section 409A and does not comply with its...more

December 31 Section 409A Correction Deadline for Severance Pay Approaching

by Benjamin I. Delancy, Ann Carr Mackey | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/17/2012

The Internal Revenue Service(IRS) has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. If the problem is not addressed by that date, then it...more

Time is Running Out! December 31 Deadline Nears for Documentary Correction of Payments Contingent on the Execution of a Release...

by Littler on 10/17/2012

Severance and other deferred compensation payments that are contingent on the execution of a release can in some circumstances result in a violation of Section 409A of the Internal Revenue Code. Section 409A governs the...more

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Internal Revenue Service › Section 409A