409a Valuation Services
To request a quote and learn more about our 409A valuation services, please contact us.
Greener Ventures is a leading provider of IRC 409A and ASC 505/718 (previously FAS 123R) valuation services to growing private companies. Greener Ventures has performed numerous 409a valuations since Section 409a was added to the Internal Revenue Code over five years ago. We work with leading law firms, accountants, venture capital firms and their portfolio companies. Big Four accounting firms such as Ernst & Young and leading regional accounting firms such as Tanner LC endorsed our 409a valuations.
Section 409A was added to the Internal Revenue Code, effective January 1, 2005, under Section 885 of the American Jobs Creation Act of 2004. Section 409A regulates the tax treatment of “nonqualified deferred compensation” paid by a corporate entity (“service recipient”) to all “service providers,” which includes executives, general employees, some independent contractors and board members. The effects of Section 409A are far reaching, because of the exceptionally broad definition of “deferral of compensation.” Section 409A was enacted, in part, in response to the practice of Enron executives accelerating the payments under their deferred compensation plans in order to access the money before the company went bankrupt.
Section 409A generally provides that a “nonqualified deferred compensation plan” must comply with various rules regarding the timing of deferrals and distributions. The penalty for non-compliance is severe in that all amounts deferred under the plan for the current year and all previous years become immediately taxable, plus a 20% penalty tax.
The importance of relying on the independent third party for your 409A valuation can not be overestimated, since such independently conducted 409a valuation shifts the burden of proof from the company to IRS. Greener Ventures is an independent, qualified valuation firm, and our clients are automatically protected under IRS’ safe harbor provision, i.e. IRS must prove 409A valuation to be grossly unreasonable.
Greener Ventures has the specific experience, expertise, and client care focus that makes us the preferred valuation firm of many growth equity companies. In addition, our fair and competitive pricing for our top quality valuations makes us the outstanding choice for valuation services.
For Companies Ready to expense stock options:
Greener Ventures offers FAS 123R services to ensure correct and compliant stock option expense accounting. Become part of our growth company clientele, and experience the benefits and security of partnering with our team of experts.
To request a quote and learn more about our 409A valuation services, please contact us.
Download our free Simple Guide to 409a.