On December 8, 2005, the IRS issued Notice 2005-94, which suspends the 2005 reporting and wage withholding requirements for compensation deferrals subject to Internal Revenue Code Section 409A. 

The American Jobs Creation Act, which included Code Section 409A, obligates employers and other payers to report all compensation deferrals during a year that are subject to Section 409A, regardless of whether the deferrals are taxable.  Such deferrals must be reported on Form W-2 for amounts deferred by employees and on Form 1099 for amounts deferred by independent contractors.  In addition, employers must withhold income taxes with respect to deferrals for their employees that are taxable under Section 409A.  Notice 2005-94 has suspended each of these requirements for 2005, but notes that future guidance may require employers and other payers to provide corrected Forms W-2 and 1099 for 2005 at a later date. 

Notice 2005-94 does not change the rules for reporting FICA and Medicare taxes on deferred compensation that becomes vested in 2005.  It also does not affect the reporting rules for deferred compensation that was actually or constructively received during 2005.