More Guidance on Section 409A
“Last month, the IRS provided helpful guidance under Code Section 409A with the release of its Chief Counsel Advice 201645012 (the CCA). The CCA is noteworthy because the IRS agreed that a 25% increase qualified as a materially greater amount, and thus deferred salary was subject to a substantial risk of forfeiture. The CCA may not be used or cited as precedent, but still gives good insight as to how the IRS might respond to similar facts and circumstances.”
To read the entire blog post by Michael Falk of Winston & Strawn, click here.