Haynes and Boone's Newsroom

IRS Surprises Employers by Suspending Reporting and Witholding Requirements Under Code Section 409A
12/15/2005
John M. Collins, Charles F. Plenge, Marilyn C. Doolittle, Jesse J. Gelsomini, Susan A. Wetzel, Tiffany Walker

The Internal Revenue Service delivered an early holiday present to employers by suspending the tax reporting and withholding requirements of Internal Revenue Code Section 409A (“409A”) for calendar year 2005.  Beginning January 1, 2005, 409A, which imposes new requirements on nonqualified deferred compensation plans, also alters the employers' reporting and tax withholding obligations on certain deferred compensation.