IRS Publishes Additional 409A Reporting, Withholding
Instructions
December 10, 2008 (PLANSPONSOR.com) - According to
Section 409A guidance issued Wednesday by the U.S. Treasury
Department and the Internal Revenue Service (IRS), an
employer is not required to report nonqualified deferred
compensation plan amounts until the agencies release further
instructions.
In Notice 2008-115, the agencies also said that
until further guidance is made available, a payer is not
required to report amounts deferred during the year under
a nonqualified deferred compensation plan in box 15a of
Form 1099-MISC.
In addition to reporting and withholding guidance,
Notice 2008-115 provides guidance to service providers on
their tax reporting and payment requirements under 409A.
Generally, these requirements reflect an extension of the
guidance provided in Notice 2006-100 and Notice 2007-89
applicable to calendar years 2005, 2006, and 2007, the
agencies indicated.
According to Wednesday's document, the interim
guidance is effective for calendar year 2008 and will
stay in effect until the next round of guidance documents
are published. Officials said they do not anticipate
further guidance will be issued until the recently
proposed 409A regulations addressing the calculation of
the amount includible in income under 409A(a) and the
calculation of the additional taxes under 409A(a) are
finalized.
Treasury Department and IRS officials also said
such guidance will not be made effective before the
calendar year beginning after such regulations are
finalized further as such regulations deal with annual
deferral reporting.
Officials from the two agencies noted that the
final 409A regulations released April 10, 2007, do not
address reporting and withholding requirements, so they
do not supersede Notice 2005-1, Q&A-24 through
Q&A-38, addressing those issues.
Wednesday's document is available
here
.
Fred Schneyer
editors@plansponsor.com