The IRS has announced that its Employee Plans Compliance Unit will begin targeting certain Nonqualified Deferred Compensation ( NQDC ) plans available under IRC Sec. 457(b). IRC Sec. 457(b) allows tax-exempt entities to sponsor NQDC plans for select groups of highly compensated employees, managers, directors, or officers. The IRS will send compliance check letters to 200 organizations in 2013 and 200 additional organizations in 2014. Recipients of the compliance check letter will be chosen from employers that file both Form W-2 showing contributions to a 457(b) plan and Form 990.
If you receive a letter or have further questions about the compliance check project, please contact the expert listed below at (800) 270-9629.
WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW. THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
