The IRS has issued Notice 2010-80. This notice modifies certain provisions of Notice 2008-113 and Notice 2010-6, dealing with the correction of failures to comply with Section 409A of the Internal Revenue Code (the "Code"), by:
• Clarifying that the types of plans eligible for relief under Notice 2010-6 include a
nonqualified plan linked to a qualified plan or another nonqualified plan, provided
that the linkage does not affect the time and form of payments under the plans;
• Expanding the types of plans eligible for relief under Notice 2010-6 to include
certain stock rights that were intended to comply with the requirements of
Code Section 409A(a) (rather than be exempt from the requirements of Section 409A(a));
• Providing an additional method of correction under Notice 2010-6 for certain
failures involving payments at separation from service subject to the requirement
to submit a release of claims or similar document; and providing transition relief
permitting the correction of such failures that were in effect on or before
December 31, 2010 (including relief from the service provider information
reporting requirements);
• Providing relief from the service provider information reporting requirements
under Notice 2010-6 for corrections made under the transition relief ending
December 31, 2010; and
• Providing relief from the requirement that service recipients furnish certain
information to service providers under Notice 2008-113 for corrections made in
the same taxable year as the failure occurs.
