Recently, Ranking Senate Finance Committee Democrat Ron Wyden (D-OR) released a report recommending fixes for so-called "tax avoidance strategies" which called for the effective elimination of nonqualified deferred compensation under Section 409A of the Internal Revenue Code in the name of fairness and closing corporate tax loopholes. The characterization of Section 409A as a "tax avoidance strategy" reflects the historical distrust of nonqualified deferred compensation (NQDC), which is fueled in part by the notorious complexity of 409A compliance. In reality, NQDC is a valuable retention tool used by companies that generally applies to a small pool of executives. Furthermore, to the issue of fairness, unlike a qualified retirement plan subject to federal protections, all 409A deferrals are subject to forfeiture. Even so, the report marks the second consecutive Congress during which the initial discussion of potential changes to the tax code has included a discussion of the reduction and repeal of significant tax provisions affecting executive compensation. In the previous Congress, then-House Ways and Means Chairman Dave Camp (R-MI) offered a comprehensive tax reform proposal which included the repeal of Section 409A as well as a hard cap on employee compensation deductions of $1 million for named executive officers under section 162(m) of the Code, which is also recommended in Wyden's report. Camp's recommendations were predicated on revenue raised from each provision, supporting the reduction of corporate rates. The revenue raising potential, which was also cited in Wyden's report, will likely keep executive compensation tax treatment in the crosshairs during any tax reform effort. Wyden's report was released just before he and Senate Finance Committee Chair Orrin Hatch unveiled their tax reform initiative, which included a request for public comment to industry groups and other stakeholders on overhauling the U.S. tax code. They have asked that comments be submitted by April 15, 2015 indicating that there may be some bipartisan willingness in the Senate to engage in substantive tax reform discussions.