IRS Proposes Modifications to Proposed Income Inclusion Regulations under Section 409A

By Daniel Rothberg and Joshua Miller on July 18, 2016 Posted in Executive Compensation, IRS

In general, proposed rulemaking issued in December 2008 with respect to income inclusion under Section 409A of the Internal Revenue Code of 1986, as amended (available here) provides that if there is a Section 409A violation in a taxable year, all compensation deferred under the applicable nonqualified deferred compensation arrangement for that taxable year and … Continue Reading

Proposed Section 409A Regulations Would Clarify Separation from Service Analysis in Connection with Change in Status From Employee to Independent Contractor

By Daniel Rothberg and Joshua Miller on July 15, 2016 Posted in Executive Compensation, IRS

Pursuant to the final regulations under Section 409A of the Internal Revenue Code of 1986, as amended, a termination of employment generally occurs at such time as the employer and employee reasonably anticipate that the level of services to be performed after such time, whether as an employee or an independent contractor, would permanently decrease … Continue Reading

IRS Releases Proposed Regulations To Clarify Section 409A Provisions

By Daniel Rothberg and Joshua Miller on July 14, 2016 Posted in Executive Compensation, IRS

The Internal Revenue Service (IRS) recently issued proposed Treasury Regulations (available here) that would clarify certain provisions of the final regulations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). The proposed regulations also would expand the anti-abuse provisions of proposed rulemaking issued in December 2008 with respect to income … Continue Reading

Tax Consequences of Compensation Clawback

By Daniel Rothberg and Joshua Miller on March 2, 2016 Posted in Clawback Rules, Executive Compensation

Executives required to repay compensation as a result of a compensation clawback regulation, provision or policy should be mindful of certain tax consequences to the executive as a result of the repayment. As described below, the tax consequences will be different when repayment occurs in a year subsequent to the year of the original payment … Continue Reading