As the end of 2012 approaches, various compensation-related
issues may need to be addressed and corrective action taken before
Dec. 31.
Section 409A "Release-Timing"
Issues
The IRS's special transition relief for correcting
"release-timing" issues under Section 409A of the
Internal Revenue Code (Code) in certain employment, severance and
other similar agreements expires on Dec. 31, 2012. Agreements that
are not corrected by this deadline could result in significant
additional taxes being imposed on employees or other "service
providers" who are parties to the agreements. Employers and
other "service recipients" should review agreements that
condition payments on an employee's or other service
provider's execution of a release of claims or other similar
condition, and, where possible, take any necessary steps before
year-end to amend these agreements to comply. In light of the
attention that the IRS has given to the release-timing issue, we
anticipate that this
