Executive Compensation Alert - Nonqualified Deferred Compensation Provisions Added to the International Tax Bill
May 4, 2004
Charles Grassley, Chairman of the Senate Finance Committee, has added amendments to the Jumpstart Our Business Strength Act (S. 1637) that would adversely change longstanding tax rules used by corporations to provide non-qualified deferred compensation to their employees. S. 1637 is an international tax bill primarily intended to address rulings by the World Trade Organization regarding foreign sales corporations and extra-territorial income. The amendments generally follow the nonqualified deferred compensation provisions previously included in last year’s National Employee Savings and Trust Equity Guarantee Act (NESTEG) pension bill with some important exceptions. If enacted, the amendments would be effective for amounts deferred after December 31, 2004. It appears that the Senate will debate S. 1637 by early summer.
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