In a positive development for employees, California recently reduced its excise tax rate for failures to comply with the California analog to Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). California Assembly Bill 1173, which was signed into law on October 4, 2013, provides that, for taxable years beginning January 1, 2013, the excise tax rate imposed by California for non-compliance with California’s equivalent of Section 409A has been reduced from 20% to 5%.View full memo, "California Reduces Rate of Section 409A State Excise Tax"
