Series of Limited Scope 409A Audits Underway
Released May 6, 2014, by Groom Law Group is the following update on 409A audits being launched by the IRS.
“The IRS has launched an audit initiative aimed at compliance with the rules for nonqualified deferred compensation plans under Code section 409A. A series of audits of a “limited scope” are underway. The IRS will assess what further steps, if any, to take after the results of these audits are in. While IRS agents have sometimes raised section 409A issues on audits, this appears to be the first systematic IRS initiative to review compliance with the complex regulatory scheme under Code section 409A. We outline below some actions that employers may consider to prepare for a potential audit on section 409A issues.”
You can read the full article, including advice regarding actions that employers may consider when preparing for a potential audit on section 409A issues.