New Article: Substantial Risk of Forfeiture Under the IRC
(Posted on December 4, 2023 by Carol V. Calhoun)

An article recently published in the Lexis Practice Advisor, Substantial Risk of Forfeiture Under the IRC, discusses the concept of substantial risk of forfeiture (SRF) under sections 83, 409A, 457(f), 457A, and 3121(v)(2) of the Internal Revenue Code and the different consequences of the failure to achieve a SRF under each such section.

Topics covered are:

Significance of SRF under the Various I.R.C. Sections
Definition of SRF
Conditions that Generally Support the Existence of a SRF and Related Requirements
Conditions that Generally Do Not Support the Existence of a SRF
Other rules relating to SRF

It is accompanied by a Substantial Risk of Forfeiture Comparison Chart, which summarizes the rules.

New Article: Nonqualified Deferred Compensation Rules for Tax-Indifferent Entities (Section 457A)
(Posted on December 4, 2023 by Carol V. Calhoun)

A new article, Nonqualified Deferred Compensation Rules for Tax-Indifferent Entities (Section 457A), discusses the rules that apply to deferred compensation plans maintained by certain corporations located in tax haven jurisdictions and partnerships owned by such corporations and/or by tax-exempt organizations. Topics covered include:

Purpose of Section 457A
Application of Section 457A
Substantial Risk of Forfeiture
Nonqualified Entities
Service Providers
Nonqualified Deferred Compensation Plans
Tax Effect of Section 457A
Relationship between Section 457A and FICA Taxes
Relationship between Sections 457A and 409A
Effective Date and Transitional Rule