Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued guidance permitting a Troubled Asset Relief Program (TARP) recipient to comply with an advisory opinion of the Special Master under certain circumstances without triggering adverse tax consequences under Code Sec. 409A. However, this guidance is applicable only for TARP recipients and the service providers of such TARP recipients and is only effective to the extent that an arrangement involving compensation paid by a TARP recipient to a one of its service providers is addressed in an advisory opinion issued by the Special Master pursuant to the Emergency Economic Stabilization Act of 2008 (Division A of P.L. 110-343) after September 30, 2009.

  In addition, because the Treasury Department and the IRS believe that further guidance is both appropriate and necessary, they have announced their intent to issue regulations that will (1) permit changes in the time and form of payment of nonqualified deferred compensation, including the acceleration of payments under a nonqualified deferred compensation plan by a TARP recipient, to the extent necessary to comply with an advisory opinion or other determination issued by the Special Master, and (2) specify when a payment that is delayed due to conditions imposed by such an advisory opinion or determination will not cause an amount to fail to qualify as a short-term deferral under Code Sec. 409A(a)(3) or Reg. §1.409A-3(j).

Notice 2009-92, 2009FED ¶46,558

Other References:

 
Code Sec. 409A

  CCH Reference - 2009FED ¶18,960.20

  CCH Reference - 2009FED ¶18,960.22

  Tax Research Consultant

  CCH Reference - TRC COMPEN: 15,056.30
CCH Reference - TRC COMPEN: 15,060
CCH Reference - TRC COMPEN: 15,062.05