Is your startup planning to offer stock options to employees? Section 409A of the Internal Revenue Code regulates nonqualified deferred compensation paid by a " service recipient" to a " service provider" by generally. If your company is planning to offer. Isigaba 409a ongakhetha kuzo. Employers and practitioners constantly update nonqualified deferred compensation plans to comply with Section 409A Errors can lead to tax. We have recently updated our A Question- and- Answer Guide to Internal Revenue Code Section 409A to reflect the final regulations under Internal Revenue. He might be wise to raise the question of whether his deferred compensation arrangement complies with the requirements of Section 409A of.