- 9 - the right to such compensation or benefits are performed. The determination of whether a plan, or method or arrangement, defers the receipts of compensation or benefits is made separately with respect to each employee and each amount of compensation or benefit. * * * (b)(1) A plan, or method or arrangement, shall be presumed to be one deferring the receipt of compensation for more than a brief period of time after the end of an employer's taxable year to the extent that compensation is received after the 15th day of the 3rd calendar month after the end of the employer's taxable year in which the related services are rendered ("the 2 1/2 month period"). * * * * * * * * * * (c) A plan, or method or arrangement, shall not be considered as deferring the receipt of compensation or benefits for more than a brief period of time after the end of the employer's taxable year to the extent that compensation or benefits are received by the employee on or before the end of the applicable 2 1/2 month period. * * * [Emphasis added.] To summarize our complicated march through the Code and regulations, section 1.83-6(a)(3), Income Tax Regs., implementing section 83(h), refers us to section 1.162-10(a), Income Tax Regs., which refers us to section 404(a)(5), which refers us to section 404(b)(1) and (2), as implemented by section 1.404(b)-1T, Temporary Income Tax Regs., 51 Fed. Reg. 4321 (Feb. 4, 1986), which contains the test that we must apply. Section 1.404(b)-1T, Temporary Income Tax Regs., provides that if the benefits were "received" within the 2-1/2 month period,9 the amounts would not be deferred compensation, they 9 Two and 1/2 months is often used interchangeably with 75 days. (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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