As part of the 2004 American Jobs Creation Act, Congress enacted Section 409A of the Internal Revenue Code, which provides for immediate taxation and additional tax liabilities on nonqualified deferred compensation that does not conform with specified election, distribution and other requirements. On April 10, 2007, the IRS issued final regulations.  Those regulations are scheduled to become effective January 1, 2008.

On August 20, 2007, Kilpatrick Stockton LLP, as part of a group of 92 of the nation's most prominent law firms, wrote to the IRS and Treasury Department strongly urging them to delay the effective date of section 409A until December 31, 2008. A copy of the letter is available HERE.

Commenting on the request, Mark Wincek, head of Kilpatrick Stockton’s Employee Benefits practice said: “There is no question it is the right outcome, even though there has been institutional resistance in the government to another delay. However, I expect today's letter to build momentum toward that goal, and I am very hopeful and moderately confident that this suggestion will be embraced before long.”