IRS Petitioned To Extend Deadline On 409A Deferred Compensation Regulations

Section 409A was recently added to the Internal Revenue Code to regulate deferred compensation programs more tightly. The reach of the new law is very broad and even affects stock option programs and many employment agreements. Comprehensive regulations were issued in April 2007 and promise to bring significant if not sweeping changes to the deferred compensation programs of nearly all employers. As it stands today, the deadline for compliance with these regulations is Dec. 31, 2007. More information on these regulations is available here.

On Aug. 21, 2007, a letter to the IRS commissioner was submitted by a consortium of 92 law firms nationwide, including Waller Lansden. A copy of the letter is available here. The message is a simple: extend the compliance deadline for Section 409A to Dec. 31, 2008.