It’s June 30, 2006. The CEO bursts into your office. He’s fuming over a notice of deposition he just received in an action filed against the company by Jane Rainmaker, a former employee.

Apparently, Jane was a top sales employee who terminated employment in early 2005. Without consulting you, a regional office brought her back as an independent sales agent on a full-time schedule. Jane now alleges that, due to the company’s negligence, she may owe over 20 percent additional taxes on the distribution she took from the company’s deferred compensation plan upon terminating employment.