No Section 409A Representations Sample Clauses

The "No Section 409A Representations" clause states that the party making the agreement does not guarantee or assure that the terms of the contract comply with Section 409A of the Internal Revenue Code, which governs the taxation of certain deferred compensation arrangements. In practice, this means that if the agreement involves deferred payments or other compensation potentially subject to Section 409A, the recipient cannot rely on the other party for legal or tax compliance regarding those rules. The core function of this clause is to allocate risk by making clear that each party is responsible for their own tax compliance, thereby protecting the disclosing party from liability if adverse tax consequences arise under Section 409A.