The Internal Revenue Service has published advice for sponsors of nonqualified deferred compensation plans affected by the new Section 409A of the Internal Revenue Code.
IRS Notice 2006-100 provides guidance for employers and taxpayers on Section 409A reporting and wage withholding requirements for calendar years 2005 and 2006, IRS officials say.
If the taxpayers do not have to include compensation deferrals potentially affected by Section 409A in income, employers and taxpayers need not report the deferrals on Form W-2 or Form 1009-MISC for 2005 or 2006., officials say.
Employers and taxpayers do need to use the W-2 and 1099-MISC forms to report any deferrals that must be included in income, officials say.
Another section of the notice provides advice for service providers affected by Section 409A.
A copy of the notice is on the Web at Document Link
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