if, as of the termination date, the plan is not sufficient for benefit liabilities (within the meaning of section 4041 of the Employee Retirement Income Security Act of 1974). (iii) Special rule for payment of taxes on deferred equity-based compensation included in income If an employer provides directly or indirectly for the payment of any Federal, State, or local income taxes with respect to any equity-based compensation required to be included in gross income by reason of this subparagraph— (I) interest shall be imposed under paragraph (1)(B)(i)(I) on the amount of such payment in the same manner as if such payment was part of the deferred equity-based compensation to which it relates, (II) such payment shall be taken into account in determining the amount of the additional tax under paragraph (1)(B)(i)(II) in the same manner as if such payment was part of the deferred equity-based compensation to which it relates, and (III) no deduction shall be allowed under this title with respect to such payment. (iv) Other definitions For purposes of this subsection— (I) Applicable covered employee The term applicable covered employee means any covered employee of a plan sponsor or a member of a controlled group which includes the plan sponsor, and any former employee who was a covered employee at the time of termination of employment with the plan sponsor or a member of a controlled group which includes the plan sponsor. (II) Covered employee The term covered employee means an individual described in section 162(m)(3) or an individual subject to the requirements of section 16(a) of the Securities Exchange Act of 1934. (v) Internal Revenue Service internal guidance The Secretary shall develop instructions and training materials for employees of the Internal Revenue Service to assist such employees in obtaining and evaluating information and determining whether there exists a restricted period with respect to a company with a single-employer defined benefit plan, and whether such a company has, during a restricted period,