Enter to open, tab to navigate, enter to select
Service Recipient
Practical Law Glossary Item 2-502-3707 (Approx. 3 pages)
Glossary
Service Recipient
For purposes of Section 409A of the Internal Revenue Code (IRC) (Section 409A), a service recipient is the entity:
- For whom a service provider performs services.
- That provides the legal right to compensation.
The service recipient also includes all of the entity's affiliates determined according to Section 414(b) and (c) of the IRC. For a service provider who is an employee, the service recipient is the employee's employer and each of the employer's affiliates that would be treated as a single employer under Section 414(b) and (c) of the IRC.
For more information regarding Section 409A, see Practice Note, Section 409A: Deferred Compensation Tax Rules: Overview.