Posts Categorized: Tax Issues

Tax Bill Compensation Changes – A Cause for Concern

in Executive Compensation, Section 409A, Tax Issues

The tax bill issued yesterday contains a number of provisions that, if implemented, will result in dramatic changes to the taxation of certain compensation arrangements.  Of particular concern: The performance-based compensation exception to the section 162(m) $1 million compensation deduction limitation would be eliminated, and the CFO would be added to the group of executives that are subject to the 162(m) limitation. Employer stock options would be treated as deferred compensation and taxable at vesting. Section 409A would be repealed and replaced by Section 409B, which generally would provide for taxation of deferred compensation at vesting, generally effective for deferred… Continue Reading

Hurricane Relief Legislation for Retirement Plans

in Qualified Plans, Retirement Plans, Tax Issues

By: Sterling Perkinson and Harrison Taylor We addressed hurricane relief for retirement plans offered by the IRS and other agencies in previous blog posts (covered here and here). While the IRS relief allows for easier access to retirement funds on account of losses due to the recent hurricanes, the IRS could not on its own alleviate the adverse tax impacts of obtaining a hardship distribution. But with the Disaster Tax Relief and Airport and Airway Extension Act (the “Act”), Congress has provided both for hardship distribution tax relief and more generous participant loan rules for participants whose principal abodes were… Continue Reading

IRS Extends ACA Reporting Deadline

in Affordable Care Act, Tax Issues

This afternoon the Internal Revenue Service issued IRS Notice 2016-70 extending the distribution due date for ACA reporting purposes. Specifically, the notice extends by 30 days the due date for distributing the 2016 Form 1095-B and the 2016 Form 1095-C, from January 31, 2017, to March 2, 2017.  Further, the Service has determined that no extension is needed for filing such forms with the Service.  Therefore, the due date for filing with the Service the 2016 Forms 1094-B, 1095-B, 1094-C, or 1095-C remains February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically. The notice also… Continue Reading

Required Reading – New Instructions for ACA Reporting

in Affordable Care Act, Health Benefits, Tax Issues

Unlike the forms for the 2015 calendar year, the 2016 Forms 1095-C must be provided to employees by January 31 and must be submitted to the IRS electronically by March 31 (for those with under 250 forms submitting on paper, the deadline is February 28).  Newly revised forms and instructions for this purpose have just been released.  Although the forms have not changed much, the instructions have changed significantly.  The penalties for failing to file a correct form with the IRS or an individual is $260 for each; certain caps and exceptions apply. Even those who mastered the 2015 instructions… Continue Reading

IRS Eliminates One of the Section 83(b) Filing Requirements

in Executive Compensation, Tax Issues

If an individual makes a Section 83(b) election to include in income the value of unvested property (such as restricted stock) that is transferred in connection with the performance of services, the individual must file the Section 83(b) election statement with the IRS no later than 30 days after the date the property is transferred.  However, under final regulations recently issued by the IRS, the individual no longer has to file a copy of the Section 83(b) election statement with his or her income tax return for the year of transfer.  These final regulations apply to property transferred on or… Continue Reading