IRS To Postpone Deferred Compensation W-2 Reporting Until 2006

The IRS will not require employers to report deferred compensation subject to the new provisions of Internal Revenue Code §409A on employees’ 2005 W-2 forms. In addition, employers will not be required to withhold tax from deferred compensation that fails to comply with §409A, or report deferred compensation payable to non-employees (e.g., outside directors) on Form 1099 for 2005.

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