Tax News and Links for Executives

Note: several links on this page connect to www.executiveloyalty.org which is a companion site to this one 

(originally established to complement classes that the author has taught at Georgetown Law over the past 10 years).



NEW DEVELOPMENTS


  • 2019.08.12  In Wilson v. Safelite Group, Inc., the employer succeed in dismissing state law claims, because its deferred compensation plan constituted an ERISA pension plan. The case arose from an IRS audit that levied substantial penalties on a former CEO's $9.1 million account, due to deferral election failures under Section 409A. Employees should check their plans, employment agreement agreements, separation agreements, and any agreements involving deferred compensation - because 409A's 20% penalty tax falls on them (not the employer).  
    • At the same time, they should seek confirmation that deferred compensation is being counted as social security wages when earned, rather than when paid (because the latter is allowed but generally is disadvantageous - see the Henkel decision). 
    • Questions?  send an email to Mark.


  • 2019.01.22  Tax Exempt Organizations: Golden Parachute Risks from Code 457(f) Plans.   See this alert.


  • 2018.09.30  Earn-out + ESOP Fiduciary Duty= SROF.  In Austin v. Commissioner, the Tax Court rejected arguments that two 47.5% shareholders were not taxable on their restricted stock awards at the time of grant because, quoting from the decision . . . continued at Substantial Risk of Forfeiture (SROF).