TITLE

Avoiding Tax Traps In a Target's Pay Plan

AUTHOR(S)
Partigan, John C.
PUB. DATE
November 2005
SOURCE
Mergers & Acquisitions: The Dealermaker's Journal;Nov2005, Vol. 40 Issue 11, p42
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
The article focuses on the impact of the enactment of the section 409A of the U.S. Internal Revenue Code that aims to regulate deferred compensation plans in 2004 on the mergers and acquisitions sector. The section includes any deferral of compensation from the year in which the related services are performed to a subsequent year. Discounted nonqualified stock options is one of the conditions of a generally constitute deferred compensation under Section 409A. A 20 percent excise tax will be paid by a participant on the amount included in his or her income.
ACCESSION #
19697910

 

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