Why the Tax Code Needs to Be Simplified - Exhibit 1 (of a potential million)
by Michael Fox
The IRS announcement of a new Code Z for reporting certain income, as quoted in today's Daily Labor Report ($ subscription required):
"This code and other reporting will be used to identify income recognized due to participation in a nonqualified deferred compensation plan that fails to meet the requirements of the Internal Revenue Code section 409A that was added by section 885 of the American Jobs Creation Act of 2004," IRS said. It said the income needs to be reported separately because it is "subject to an additional tax and interest."