IRS Provides Additional Relief Under Sec. 409A Document Failure Correction Program

The IRS on Nov 30 released serve use for nonqualified deferred remuneration (NQDC) skeleton lonesome by Sec. 409A (Notice 2010-80). The notice expands a forms of skeleton authorised for use underneath Notice 2010-6, that was released in January. It also provides an additional process of improvement and transition use underneath Notice 2010-6 for certain devise request failures relating to payments during subdivision from service, and it modifies a improvement stating mandate in Notice 2008-113 and Notice 2010-6.

Notice 2010-6 supposing methods for taxpayers to willingly scold certain forms of failures to approve with a request mandate of Sec. 409A. (For some-more on Notice 2010-6, see Walker Jones, “Notice 2010-6: Sec. 409A Document Failure Correction Program.”) Notice 2010-80 clarifies that a forms of skeleton authorised for use underneath Notice 2010-6 embody a nonqualified devise related to a competent devise or another nonqualified plan, supposing that a linkage does not impact a time and form of payments underneath a plans.

Notice 2010-80 also expands a forms of skeleton authorised for use underneath Notice 2010-6 to embody certain batch rights that were dictated to approve with a mandate of Sec. 409A.

The notice provides an additional improvement process for certain failures involving payments during subdivision from use theme to a requirement to contention a recover of claims or identical document. It also provides transition use needing a improvement of such failures that were in outcome on or before Dec 31, 2010 (including use from a use provider information-reporting requirements).

The notice provides use from a Notice 2010-6 use provider information-reporting mandate for corrections done underneath a transition use finale Dec 31, 2010.

The notice also provides use from a Notice 2008-113 requirement that use recipients yield certain information to use providers for corrections done in a same taxation year a disaster occurs.

The Notice 2010-80 modifications to Notice 2010-6 are effective for taxation years commencement on or after Jan 1, 2009. The Notice 2010-80 modifications to Notice 2008-113 are effective for taxation years commencement on or after Jan 1, 2010.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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