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IRS Provides Relief for Unintentional Operational Violations of Section 409A

On December 3, 2007, the IRS issued Notice 2007-100, which provides relief for certain unintentional operational failures to comply with Section 409A. As discussed in our prior Cooley Alerts, Section 409A of the Internal Revenue Code covers a wide range of nonqualified deferred compensation plans and arrangements and imposes a number of strict requirements on such plans and arrangements for participants to avoid premature taxation, an additional 20% federal income tax, and an interest-charge tax.

by Buff Miller and Tom Reicher, of Cooley Godward Kronish LLP

Full Story: http://vcexperts.com/vce/news/buzz/archive_view.asp?id=439&referrer=buzz&mail_id=buzz749

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