Publication
Legal Alert – Transition Relief for Correction of Section 409A Release Agreement Timing Failures Expires on December 31, 2012
by Thomas R. Hoecker, Marvin S. (Bucky) Swift, Jr., Anne M. Meyer and Greg Gautam
Change in control, severance, employment and other nonqualified deferred compensation agreements that are subject to Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), and require an employee to sign a release to receive payment, should be reviewed for compliance with the documentary requirements of Section 409A by December 31, 2012. Failure to identify and amend these agreements by year-end could create tax problems for the employees covered by such agreements.
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Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 500 attorneys practicing in 16 locations throughout the United States and in Mexico, including Los Angeles, Orange County and San Diego, California; Phoenix and Tucson, Arizona; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno, Nevada; Albuquerque, New Mexico; Portland, Oregon; Dallas, Texas; Salt Lake City, Utah; Seattle, Washington; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit swlaw.com.