IRS Extends Reporting and Withholding Rules for Another Year: Rules for 2007

The IRS issued Notice 2007-89 on October 23, 2007, which provides guidance on (i) reporting and withholding compensation that is deferred in 2007, (ii) reporting and withholding amounts includible in income under section 409A of the Code (409A) in 2007, and (iii) income tax reporting and tax payment for amounts includible in income under 409A in 2007.

On November 30, 2006, the IRS issued guidance relating to reporting and wage withholding requirements for 409A includible amounts in calendar years 2005 and 2006. Notice 2007-89 essentially extends the reporting and withholding rules from 2006 to 2007.

For the full story, please view the PDF.