Sec. 409A: international issues.

The Tax AdviserVol. 39 Nbr. 11, November 2008

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Summary


Employee Benefits & Pensions

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Sec. 409A: international issues.

Imagine this scenario: A foreign multinational sends a senior executive to the United States to become president of its U.S. subsidiary. The executive goes on the payroll of the U.S. company and becomes a U.S. tax resident. He also continues to be the beneficiary through the parent company of various stock options and other nonqualified deferred compensation (NQDC) plans. The foreign parent's executive compensation plans do not conform with the Sec. 409A rules.

Can Sec. 409A tax and penalize employees if an employer does not its...

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