Internal Revenue Bulletin: 2008-51 |
December 22, 2008 |
Table of Contents
- Highlights of This Issue
- Preface
- Part III. Administrative, Procedural, and Miscellaneous
- Notice 2008-104
- Notice 2008-110
- Notice 2008-111
- SECTION 1. PURPOSE AND BACKGROUND
- SECTION 2. DEFINITION OF THE PLAN
- SECTION 3. COMPONENTS OF AN INTERMEDIARY TRANSACTION
- SECTION 4. ENGAGING IN THE TRANSACTION PURSUANT TO THE PLAN
- SECTION 5. SAFE HARBOR EXCEPTIONS FOR CERTAIN PERSONS; PARTICIPATION GENERALLY
- SECTION 6. EFFECTIVE DATE; DISCLOSURE, LIST MAINTENANCE, AND REGISTRATION REQUIREMENTS; PENALTIES; OTHER CONSIDERATIONS
- SECTION 7. EFFECT ON OTHER DOCUMENTS
- SECTION 8. REQUEST FOR COMMENTS
- DRAFTING INFORMATION
- Notice 2008-112
- Notice 2008-113
- I. PURPOSE
- II. BACKGROUND
- III. ELIGIBILITY REQUIREMENTS
- A. In General
- B. Avoidance of Recurrence of Operational Failure
- C. Relief not Available to Service Providers Under Examination
- D. Additional Eligibility Requirements
- E. Required Repayments by the Service Provider
- F. Eligibility for Relief for a Taxable Year in which the Service Recipient Experiences a Financial Downturn or Other Financial Issue
- G. Definition of Insider
- H.Determining Certain Periods of Days
- I. Adjustments for Earnings and Losses
- J. References to the Internal Revenue Code
- IV. CORRECTIONS OF CERTAIN OPERATIONAL
FAILURES IN THE SAME TAXABLE YEAR AS THE FAILURE OCCURS
- A. Failure to Defer Amount or Incorrect Payment of Amount Payable in a Subsequent Taxable Year Corrected in the Same Taxable Year as the Failure
- 1. Relief for Amounts to which § IV.A Applies
- 2. Amounts to which § IV.A Applies
- 3. Reporting and Withholding Requirements
- 4. Adjustments for Earnings
- 5. Examples
- B. Incorrect Payment of Amount Payable in Same Taxable Year or Incorrect Payment in Violation of § 409A(a)(2)(B)(i) Corrected in the Same Taxable Year as the Failure
- 1. Relief for Amounts to which § IV.B Applies
- 2. Amounts to which § IV.B Applies
- 3. Reporting and Withholding Requirements
- 4. Adjustment for Earnings
- 5. Examples
- C. Excess Deferred Amount Corrected in the Same Taxable Year
- 1. Relief for Amounts to which § IV.C Applies
- 2. Amounts to which § IV.C Applies
- 3. Adjustment for Earnings
- 4. Example
- D. Correction of Exercise Price of Otherwise Excluded Stock Rights
- 1. Relief for Amounts to which § IV.D Applies
- 2. Amounts to which § IV.D Applies
- 3. Example
- V. CORRECTIONS OF CERTAIN OPERATIONAL
FAILURES INVOLVING NON-INSIDER SERVICE PROVIDERS IN THE TAXABLE YEAR
IMMEDIATELY FOLLOWING THE TAXABLE YEAR IN WHICH THE FAILURE OCCURS
- A. In General
- B. Failure to Defer Amount or Incorrect Payment of Amount Payable in a Subsequent Taxable Year Corrected in the Taxable Year Immediately Following the Failure
- 1. Relief for Amounts to which § V.B Applies
- 2. Amounts to which § V.B Applies
- 3. Reporting and Withholding Requirements
- 4. Adjustment for Earnings
- 5. Example
- C. Incorrect Payment of Amount Payable in Same Taxable Year or Incorrect Payment in Violation of § 409A(a)(2)(B)(i) Corrected During Subsequent Taxable Year
- 1. Relief for Amounts to which § V.C Applies
- 2. Amounts to which § V.C Applies
- 3. Reporting and Withholding Requirements
- 4. Adjustment for Earnings
- 5. Example
- D. Excess Deferred Amount Corrected in the Taxable Year Immediately Following the Year of the Failure
- 1. Relief for Amounts to which § V.D Applies
- 2. Amounts to which § V.D. Applies
- 3. Adjustment for Earnings
- 4. Example
- E. Correction of Exercise Price of Otherwise Excluded Stock Rights
- 1. Relief for Amounts to which § V.E Applies
- 2. Amounts to which § V.E. Applies
- 3. Example
- VI. RELIEF FOR CERTAIN OPERATIONAL FAILURES
INVOLVING LIMITED AMOUNTS
- A. In General
- B. Failure to Defer Limited Amount not Corrected in the Same Taxable Year and Certain Erroneous Payments of Limited Amounts
- 1. Relief for Amounts to which § VI.B Applies
- 2. Amounts to which § VI.B Applies
- 3. Reporting and Filing Requirements
- 4. Examples
- C. Limited Excess Deferred Amount not Corrected in the Same Taxable Year
- 1. Relief for Amounts to which § VI.C Applies
- 2. Amounts to which § VI.C Applies
- 3. Reporting and Withholding
- 4. Adjustment for Earnings
- 5. Example
- VII. RELIEF FOR CERTAIN OTHER OPERATIONAL
FAILURES
- A. General Requirements
- B. Failure to Defer Amount not Corrected in the Same Taxable Year and Certain Erroneous Payments
- 1. Relief for Amounts to which § VII.B Applies
- 2. Amounts to which § VII.B Applies
- 3. Reporting and Withholding
- 4. Adjustment for Earnings
- 5. Example
- C. Incorrect Payment of Amount Payable in Same Taxable Year or Incorrect Payment in Violation of § 409A(a)(2)(B)(i) not Corrected in the Same Taxable Year as the Failure
- 1. Relief for Amounts to which § VII.C Applies
- 2. Amounts to which § VII.C Applies
- 3. Reporting and Withholding
- 4. Adjustment for Earnings
- 5. Examples
- D. Excess Deferred Amount not Corrected in the Same Taxable Year
- 1. Relief for Amounts to which § VII.D Applies
- 2. Amounts to which § VII.D Applies
- 3. Reporting and Withholding
- 4. Adjustment for Earnings
- 5. Example
- VIII. SPECIAL TRANSITION RULE FOR NON-INSIDERS
- IX. INFORMATION AND REPORTING REQUIREMENTS
- A. Information Required with Respect to Correction of an Operational Failure in the Same Taxable Year as the Failure Occurs
- 1. Attachment to Service Recipient Tax Return for Failures Described in § IV
- 2. Information to be Provided to Service Provider for Failures Described in § IV
- B. Information Required with Respect to Relief for Certain Operational Failures
- 1. Attachment to Service Recipient Tax Return for Failures Described in § V, § VI, § VII or § VIII
- 2. Information to be Provided to Service Provider for Failures Described in § V, § VI, § VII or § VIII
- 3. Attachment to Service Provider Tax Return for Failures Described in § V, § VI, § VII or § VIII
- X. EFFECT ON OTHER DOCUMENTS
- XI. REQUEST FOR COMMENTS
- XII. PAPERWORK REDUCTION ACT
- XIII. DRAFTING INFORMATION
- Notice 2008-114
- Part IV. Items of General Interest
- REG-148326-05
- AGENCY:
- ACTION:
- SUMMARY:
- DATES:
- ADDRESSES:
- FOR FURTHER INFORMATION CONTACT:
- SUPPLEMENTARY INFORMATION:
- Background
- Explanation of Provisions
- I. Scope of Proposed Regulations
- II. Effect of a Failure to Comply with Section 409A(a) on Amounts Deferred in Subsequent Years
- III. Calculation of the Amount Deferred under a Plan for the Taxable Year in which the Plan Fails to Meet the Requirements of Section 409A(a) and all Preceding Taxable Years
- A. In general
- B. Total amount deferred
- 1. In General
- 2. Treatment of Payments
- 3. Treatment of Deemed Losses
- 4. Treatment of Rights to Deemed Earnings on Amounts Deferred
- 5. Total Amount Deferred for a Taxable Year Relates to the Entire Taxable Year, Regardless of Date or Period of Failure
- 6. Treatment of Short-Term Deferrals
- C. Calculation of total amount deferred — general principles
- 1. General Rule
- 2. Rules Regarding Alternative Times and Forms of Payment
- 3. Treatment of Rights to Formula Amounts
- D. Calculation of total amounts deferred — specific types of plans
- 1. Account Balance Plans
- 2. Nonaccount Balance Plans
- 3. Stock Rights
- 4. Separation Pay Arrangements
- 5. Reimbursement Arrangements
- 6. Split-Dollar Life Insurance Arrangements
- 7. Foreign Arrangements
- 8. Other Plans
- E. Calculation of amounts includible in income
- 1. Determination of the Portion of the Total Amount Deferred for a Taxable Year that is Subject to a Substantial Risk of Forfeiture
- 2. Determination of the Portion of the Total Amount Deferred for a Taxable Year that has been Previously Included in Income
- F. Treatment of failures continuing during more than one taxable year
- IV. Application of Additional 20 Percent Tax
- V. Application of Premium Interest Tax
- A. In general
- B. Amounts to which the premium interest tax applies
- C. Identification of initial years of deferral for includible amounts
- 1. Identification of Amounts Deferred in a Particular Taxable Year — General Principles
- 2. Identification of Initial Years of Deferral — Treatment of Amounts Previously Included in Income, Payments, and Investment Losses
- D. Calculation of the hypothetical underpayment
- E. Potential safe harbor calculation methods
- VI. Treatment of Payments, Forfeitures, or Permanent Losses of Deferred Amounts in Taxable Years after the Amount is Included in Income under Section 409A(a)
- A. Payments of deferred compensation in taxable years after the inclusion of such amounts in income under section 409A(a)
- B. Permanent forfeiture or loss of a deferred amount previously included in income under section 409A(a)
- 1. Effect on Service Provider
- 2. Effect on Service Recipient
- VII. Service Provider Income Inclusion and Additional Taxes and Service Recipient Reporting and Withholding Obligations
- A. Service provider income inclusion
- B. Annual deferral reporting
- C. Income inclusion reporting and income tax withholding
- Proposed Effective Date
- Special Analyses
- Comments and Public Hearing
- Proposed Amendments to the Regulations
- Drafting Information
- Announcement 2008-122
- Announcement 2008-123
- REG-148326-05
- Definition of Terms and Abbreviations
- Numerical Finding List
- Effect of Current Actions on Previously Published Items
- How to get the Internal Revenue Bulletin
More Internal Revenue Bulletins |