409A Technical Fixes May Add Flexibility to Death Payment Timing Rule

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Nov. 17— Technical corrections to the final regulations under tax code Section 409A may add more flexibility to the 30-day payment rule for death distributions and clarify some other issues that have been raised by taxpayers, a Treasury Department official said during a law conference.

Robert J. Neis, deputy benefits tax counsel at Treasury, said the technical corrections that are in the works are going to be “noncontroversial, straightforward clarifications of rules that are in the final regulations.”

The Internal Revenue Service and Treasury are sympathetic to problems with respect to timing of death distributions and may provide more flexibility in that one area, because it isn't likely to lead to abuse, he said, speaking during a Nov. 14 session of the American Bar Association Joint Committee on Employee Benefits' Executive Compensation National Institute in Chicago.

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