INCOME TAX

Notice 2017–75, page 602. This notice provides guidance on the application of sections 409A and 457A. Specifically, this guidance addresses the transition provisions enacted as part of section 457A that generally provide that amounts deferred and attributable to services performed before January 1, 2009, that would otherwise have been subject to inclusion in income under section 457A, are includible in gross income in the later of the last taxable year beginning before 2018 or the date of vesting. As amounts have become includible in income during 2017, stakeholders have raised questions concerning the ability to make distributions to pay the income taxes due on these amounts and still maintain compliance with section 409A. This notice provides that service recipients may accelerate distributions to pay income taxes on amounts includible in 2017 without violating section 409A. This notice supplements the guidance provided in Notice 2009–8, 2009–4 IRB 347 (January 26, 2009), and is not intended to supersede or modify any of the guidance provided in Notice 2009–8.