Reporting developments affecting employee benefits and executive compensation
The Internal Revenue Service recently announced that electronic or digital signatures will be accepted for Code Section 83(b) elections. This relief is part of the IRS’s response to the COVID-19 pandemic and is temporary.
Background
Taxpayers receiving grants of restricted stock typically recognize taxable income in connection with such grants…
On July 26, 2021, the IRS issued Notice 2021-46 (the “Notice”), which provides new guidance in the form of 11 questions and answers on the COBRA premium subsidy and the related tax credit under the American Rescue Plan Act of 2021 (“ARPA”). The Notice expands on previous guidance provided under…
As the COVID-19 pandemic drags on, administrators of defined benefit pension plans continue to field questions about the notary requirement related to certain participant and spousal elections. For qualified retirement plans subject to the qualified joint and survivor annuity rules (such as defined benefit pension plans), an alternative form of…
The Internal Revenue Service recently announced that it will treat contributions to single-employer defined benefit pension plans, previously extended to January 1, 2021 by the CARES Act, as timely if made no later than January 4, 2021 (which is the first business day after January 1, 2021).
Plan sponsors of…
The Internal Revenue Service announced the 2021 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2021. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans and…
On August 8, 2020, President Trump issued the Presidential Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster (the “Executive Order”). The Executive Order instructed the Treasury Department to provide guidance authorizing employers to defer the collection and deposit of employee payroll tax obligations. On August
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On July 31, 2020, the Internal Revenue Service and the U.S. Treasury Department issued Proposed Treasury Regulations (the “Proposed Regs”) providing guidance under the “carried interest” rules of Section 1061 of the Internal Revenue Code of 1986, as amended (the “Code”). Please see our Quick Study “IRS Issues Carried…
The Internal Revenue Service (IRS) issued helpful guidance to plan sponsors of safe harbor 401(k) plans that are considering reducing or suspending safe harbor employer matching contributions or safe harbor nonelective contributions as a result of the COVID-19 pandemic. As explained below, IRS Notice 2020-52 provides temporary relief from certain…
Lori Basilico and Phil Bush review IRS Notice 2020-50 which provides helpful guidance for plan sponsors and plan participants who wish to take advantage of the enhanced distribution and loan provisions under the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
The Quickstudy is titled “IRS Issues Helpful…
In a surprising memo from the IRS Office of Chief Counsel, the IRS concluded that there is no statute of limitations period on the Employer Shared Responsibility Payments (“ESRP”) under the Affordable Care Act. The IRS reasoned that the filing of Forms 1094-C and 1095-C (“ACA Returns”) does not start…
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