Legal Blog

IRS Finds Section 409A Failures Based on Literal Construction of Treasury Regulations and Use of Informal Company Records in Chief Counsel Advice 201725027

Introduction: IRS Chief Counsel Advice 201725027 (Mar. 6, 2017).  On March 6, 2017, the IRS issued Chief Counsel Advice 201725027 (“CCA”), released on June 23, 2017, advising Associate Chief Counsel that a certain nonqualified deferred compensation (“NQDC”) plan had document and operational failures and the deferrals under such plan were includible in income of the participant and subject to additional taxes under section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (Code”).  Generally

ABOUT MARINA VISHNEPOLSKAYA

Marina Vishnepolskaya’s practice focuses on domestic and cross-border tax and employee benefits matters. She counsels employers and executives on a wide range of employee benefits and executive compensation matters, including drafting and amending salary, bonus, cash and equity-based deferred compensation plans, fringe benefit plans and other compensation arrangements, employee policies and handbooks, employment and separation agreements, compliance with IRS voluntary plan correction requirements for nonqualified plans and related employment and tax laws.

 

 

 

 

 

 

 

ABOUT OFFIT KURMAN

Offit Kurman, one of the fastest-growing, full-service law firms in the United States, serves dynamic businesses, individuals and families. With 15 offices and nearly 250 lawyers who counsel clients across more than 30 areas of practice, Offit Kurman helps maximize and protect business value and personal wealth by providing innovative and entrepreneurial counsel that focuses on clients’ business objectives, interests and goals. The firm is distinguished by the quality, breadth and global reach of its legal services and a unique operational structure that encourages a culture of collaboration. For more information, visit www.offitkurman.com.

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