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Client Alert

Employers Should Act ASAP: Congress Tightens Deferred Compensation Tax Laws

October 18, 2004

Mark Poerio

Buried in the corporate tax legislation that Congress passed yesterday is a provision adding Section 409A to the Internal Revenue Code. An IRS spokesman was not exaggerating when he described Section 409A as a “sea change” in deferred compensation taxation. President Bush is expected to sign the legislation.

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