California Reduces State Income Tax Penalty for Section 409A Violations

California recently enacted legislation that reduces the state?ÇÖs income tax penalty for violations of Section 409A of the federal Internal Revenue Code of 1986, as amended (?Ç£Section 409A?Ç¥), from 20 percent to 5 percent.?á The reduction is effective for taxable years beginning on or after January 1, 2013, but does not affect the state?ÇÖs interest penalty tax or federal penalties related to Section 409A violations.?á The new law can be found here.