Thursday, October 30, 2008
Tuesday, October 28, 2008
IRS May Waive 2008 Form Y Reporting
IRS May Waive 2008 Form Y Reporting
According to a BNA news report, Treasury Deputy Benefits Tax Counsel Helen H. Morrison said in a recent Clark Consulting Webinar that the IRS expects to issue a notice before the end of 2008 waiving the requirement for reporting this year, "and until such time as we have issued regulations on how to calculate the amount that would be included in income."
Morrison also said the Treasury expects to soon issue proposed regulations on how to calculate amounts that would be included in income due to a failure to meet 409A requirements. The proposed regulations will also "serve as a foundation for providing guidance as to what would be reported for compliant plans," using Code Y on Form W-2, she said.
According to a BNA news report, Treasury Deputy Benefits Tax Counsel Helen H. Morrison said in a recent Clark Consulting Webinar that the IRS expects to issue a notice before the end of 2008 waiving the requirement for reporting this year, "and until such time as we have issued regulations on how to calculate the amount that would be included in income."
Morrison also said the Treasury expects to soon issue proposed regulations on how to calculate amounts that would be included in income due to a failure to meet 409A requirements. The proposed regulations will also "serve as a foundation for providing guidance as to what would be reported for compliant plans," using Code Y on Form W-2, she said.
Friday, October 24, 2008
Forbes Advises Financial Execs on Deferring
Think twice before deferring, and get your money out if you can.
"No. 1: Carefully consider whether to defer any of your 2009 compensation.
No. 2: If you can, elect to accelerate the distribution of your prior years' deferred compensation."
Article notes that WaMu executives used IRS Transition Relief to withdraw deferred compensation prior to meltdown. Form 8-K.
"No. 1: Carefully consider whether to defer any of your 2009 compensation.
No. 2: If you can, elect to accelerate the distribution of your prior years' deferred compensation."
Article notes that WaMu executives used IRS Transition Relief to withdraw deferred compensation prior to meltdown. Form 8-K.
Thursday, October 16, 2008
UnitedHealth Group Incurs Costs for 409A Violation
Company Slammed with 409A Tax Reimbursements
Financial Statement Footnote:
"Includes $87 million of pre-tax Operating Costs for the settlement
of Internal Revenue Code Section 409A (IRS Section 409A) surtax
liabilities on behalf of non-officer employees who exercised certain
options in 2006 and 2007, and $89 million of non-cash Operating Costs
for the modification charge due to repricing unexercised options
subject to IRS Section 409A."
Financial Statement Footnote:
"Includes $87 million of pre-tax Operating Costs for the settlement
of Internal Revenue Code Section 409A (IRS Section 409A) surtax
liabilities on behalf of non-officer employees who exercised certain
options in 2006 and 2007, and $89 million of non-cash Operating Costs
for the modification charge due to repricing unexercised options
subject to IRS Section 409A."
WuXi PharmaTech Executives Face 409A Penalty Taxes
Company Executives to sell Stock to Cover Penalty Taxes from in-the-money Options
"...we expect up to 350,000 ADSs may be sold by other management members and employees prior to year-end for 409A purposes. Prior to 2008, a number of our management members and employees who were U.S. taxpayers were granted options with an exercise price potentially below fair market value on the date of grant, as determined under Section 409A of the U.S. Tax Code. To avoid the adverse tax consequences imposed under Section 409A to these U.S. taxpayers, the options were amended previously to require that they be exercised, if at all, on or prior to December 31, 2008 (no other changes were made). If unexercised by year-end those options will expire, and those individuals may need to sell ADSs to pay related taxes and the purchase price payable upon exercise."
"...we expect up to 350,000 ADSs may be sold by other management members and employees prior to year-end for 409A purposes. Prior to 2008, a number of our management members and employees who were U.S. taxpayers were granted options with an exercise price potentially below fair market value on the date of grant, as determined under Section 409A of the U.S. Tax Code. To avoid the adverse tax consequences imposed under Section 409A to these U.S. taxpayers, the options were amended previously to require that they be exercised, if at all, on or prior to December 31, 2008 (no other changes were made). If unexercised by year-end those options will expire, and those individuals may need to sell ADSs to pay related taxes and the purchase price payable upon exercise."
Friday, October 10, 2008
Tuesday, October 7, 2008
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