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Deferred compensation: what physicians need to know about IRC 409A
Eddie Phillips1, Allen Carpenter
1Pershing Yoakley & Associates, USA. ephillips@pyapc.com
Abstract:
The American Jobs Creation Act of 2004 added Internal Revenue Code (IRC) Section 409A, which makes changes to nonqualified deferred compensation plans. Physician practice groups can take steps to avoid the risk of penalty from noncompliance. Precision and caution in addressing deferred compensation arrangements are especially important now since the IRS has targeted non-qualified deferred compensation plans as the number-one executive compensation compliance issue in its ongoing audit initiative.
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Physicians
The physician's primary responsibility is to diagnose illness and direct the medical or surgical treatment of the condition. The authority to admit patients to a healthcare agency or institution and practice care within that setting is granted to physicians by the healthcare agency or institution itself.

