On July 25, 2016, the IRS issued final regulations under Section 83 of the Internal Revenue Code (the “Code”) simplifying the process by which taxpayers may make elections under Code Section 83(b) by eliminating one of the filing requirements. These final regulations adopt without change proposed regulations that were issued in July 2015.
On June 21, 2016, the Internal Revenue Service issued long-awaited guidance on deferred compensation arrangements under Sections 409A and 457 of the Internal Revenue Code. The proposed regulations under Section 409A clarify and/or modify certain provisions of the final regulations issued under that Section in 2007, and also withdraw a specific provision of earlier proposed regulations under Section 409A issued in 2008 that addressed the calculation of amounts includible in income under Section 409A(a)(1), replacing it with revised proposed regulations. The proposed regulations under Code Section 457 prescribe rules for the taxation of deferred compensation arrangements established and maintained by state or local governments or other tax exempt organizations. In each case, the proposed regulations would affect participants, beneficiaries, plan sponsors, and administrators.
Stay tuned for our in-depth analysis on these proposed regulations.
In this blog, Nutter's Executive Compensation and Employee Benefits attorneys will provide updates on key developments and offer practical tips and best practices relating to executive compensation, employee benefits, and corporate governance matters.