• IRS Issues Notice Allowing Correction of Documentary Errors for Purposes of Section 409A
  • January 27, 2010
  • Law Firm: Kaye Scholer LLP - New York Office
  • On January 5, 2010, the Internal Revenue Service (“IRS”) issued Notice 2010-6 (“the Notice”) to allow certain documentary failures in nonqualified deferred compensation plans to be corrected so as to avoid the excise tax and other penalties under Section 409A of the Internal Revenue Code of 1986 (the “Code”). The Notice provides some useful guidance and the first means to correct a nonconforming document to avoid the punitive taxes imposed by Section 409A. Unfortunately, it also contains provisions that may create additional problems for employers.