The instructions for the new Form 990 contain a detailed matrix (starting on page 25) setting out numerous types of compensation, and showing where on the form each type of compensation is reported.  But the IRS itself acknowledges that not every type of compensation is listed.  The complexity of dealing with this issue is illustrated by a project we recently completed for a client – among other things, we found that the matrix does not list every place in the Form where compensation is reported – so, for example, the matrix doesn’t give any information about completing Schedule J, Part I, line 4 regarding various types of compensation.

 As with most government agencies, the best way to get an answer about the interpretation of regulation is often to track down the person responsible for interpreting or administering the specific regulation.  That’s what we did here – not without some effort – and we thought we’d share the information.  The answers we received from a very knowledgeable person at the IRS also point up that the descriptions of certain types of compensation used in the matrix may require some analysis to determine the specific type or types of plans covered.

 Split Dollar Plans:  These are considered “supplemental nonqualified retirement plans” to be reported under Schedule J, Part I, line 4b.

 457(f) plans:  These should also be reported under Schedule J, Part I, line 4b, in addition to other places on the Form 999 specified in the matrix.  But in addition to the places on the matrix that specifically refer to 457(f) plans, there are two other entries that apply:  “Contributions to nonqualified plans (vested)” and “Contributions to nonqualified plans (nonvested).”  The latter covers 457(f) plans when still subject to a risk of forfeiture.

 457(b) plans:  There are 2 specific entries for these in the matrix (vested and nonvested).  In response to our question, the IRS stated that these entries are intended to include contributions by the employer, as well as by the employee.

 Please note that this information is not necessarily binding on the IRS; furthermore, we are not providing legal or accounting advice and you should review this information with your accountants, attorneys or other professional advisors.