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NOW HE TELLS US

March 25, 2008

Former Treasury official Michael Doran in Tax Notes ($link) on the execrable Sec. 409A deferred compensation rules:

In fairness to the regulators who wrote the section 409A regulations, the statute itself is fundamentally unsound. I had all too close a look at the legislative problems when I was part of the Treasury Department team that provided technical advice to the congressional staffers who drafted section 409A. Although staffers added the worst feature -- the 20 percent penalty tax on "bad" deferred compensation -- after I left government, the wheels came off early in the process. Without question, I share responsibility for the poor legislative product.

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