Buzz Archive:
IRS Provides Relief for Unintentional Operational Violations of Section 409A

by Buff Miller and Tom Reicher, of Cooley Godward Kronish LLP, 5/20/2008

On December 3, 2007, the IRS issued Notice 2007-100, which provides relief for certain unintentional operational failures to comply with Section 409A.

Section 409A of the Internal Revenue Code covers a wide range of nonqualified deferred compensation plans and arrangements and can impose a number of strict requirements on such plans and arrangements for participants to avoid premature taxation, an additional 20% federal income tax, and an interest-charge tax.

How can you and your portfolio companies avoid this if there is an unintentional violation? Guest authors, Buff Miller and Tom Reicher, of Cooley Godward Kronish LLP tell us how.