Just in time for year-end, IRS has thrown a rule change at you.

Fortunately, if you’re affected, it actually means a little less work for your company.

If you have nonqualified deferred compensation you’ve paid to employees, independent contractors or others, you just got a little extra time.

Those payments are supposed to be reported on either a 1099-MISC (Box 15A) or a W-2 (Box 12, Code Y), depending on the payee’s status. But IRS issued interim guidance that you will not have to report those payments for Tax Year ’08.

Note: Payees are still expected to pay whatever taxes they may owe on that compensation — a point you’ll probably want to clarify when you explain the change to any affected payees.

Notice 2008-115 is in effect until further guidance is issued. You can learn more about the issue here.

Tags: 1099s, Communication, Information returns, IRS, Tax compliance, Tax reporting, W-2s