Friday, April 2, 2010

More on 409A Audits and IRS "IDR" Requests

Provided by Tara Silver-Malyska of Grant Thornton HERE

"IDRs have included requests such the following:

Provide a list of all plans and arrangements that provide an employee with a legally binding right to compensation in one year, but payment in a subsequent year

Provide the basis for the position that the arrangement(s) is not subject to Section 409A, e.g., the short-term deferral rule, if applicable

Identify the terms of the nonqualified deferred compensation plan’s elections, including the deadline for the elections

If a payment was deferred beyond the originally scheduled payment date, identify the terms, including the payment date and the rescheduled payment date

Identify any acceleration in payments, including transition relief elections and deadlines, the original payment and actual payment dates

Identify “specified employees” and any payments of nonqualified deferred compensation made to specified employees within six months after separation from service

Provide a description of the plan and each modification made to comply with Section 409A

Identify and describe Section 409A violations and if such amounts were reported on a W-2 or Form 1099

Identify participation in any correction programs

Provide certain information on stock options and SARs that may be subject to Section 409A

Provide a description of any nonqualified deferred compensation funding resulting from a decline in the company’s financial condition"

1 comment:

secure tabs said...

I think it it is perfect getting these transition relief elections and deadlines i think it is the perfect proposal to reach what they want.