According to an announcement from the U.S. Treasury Department and the Internal Revenue Service (IRS), the new compliance deadline for the 409A mandates is December 31, 2008 rather than a year earlier.
The announcement also included word that the federal regulators expect to issue guidance on a 409A correction program “as soon as possible.”
The government officials acknowledged in Monday’s announcement that they had heard the compliance delay pleas.
“Commentators stated that although the Notice 2007-78 transition relief was helpful, the transition relief in that notice did not adequately address the need for additional time for service recipients and service providers to analyze all of their plans and make informed and reasoned decisions regarding the changes that would be necessary to bring existing arrangements into compliance with the final regulations,” regulators admitted. “This notice addresses these concerns by generally extending the transition relief currently scheduled to expire on December 31, 2007 through December 31, 2008.
In September, a group of nearly 100 law firms again asked the Internal Revenue Service (IRS) to push back the deadline to bring documents into compliance with 409A nonqualified deferred compensation regulations even after the IRS earlier granted a limited compliance extension (See Law Firms Ask for Second 409A Deadline Delay ).
The latest IRS release is