Civil Procedure, Tax Law, Labor & Employment Law

IRS Releases Final Colleges and Universities Compliance Report: Reveals Significant Underreporting

by Richard Frazier, Elizabeth Mullen | Saul Ewing LLP on 5/1/2013

A recent report of the IRS’ Exempt Organizations (EO) division provides the results of a multi-year audit of tax-exempt colleges and universities regarding their compliance with IRS reporting requirements. The report focuses...more

Software Vendor Challenges Massachusetts’ Restrictive Policy on Multiple Points of Use Certificates

by Michael Jacobs, Robert Weyman | Reed Smith on 4/15/2013

Software purchasers that have paid Massachusetts sales tax on the full purchase price for software that was also concurrently available for use by employees outside Massachusetts, should consider filing protective refund...more

Federal Appeals Court Holds That Supplemental Unemployment Compensation Benefits Are Not ‘Wages’ Subject To FICA Taxation,...

by Robert Hertzberg, Lisa B. Petkun, Michael Reed | Pepper Hamilton LLP on 4/15/2013

In an important recent decision, United States v. Quality Stores, Inc., et al., Case No. 01-1563, 2012 U.S. App. LEXIS 18820 (6th Cir. Sept. 7, 2012), the U.S. Court of Appeals for the Sixth Circuit held that supplemental...more

Termination Notice Periods Extended in Brazil—With Retroactive Effect!

by Diana J. Nehro | Ogletree, Deakins, Nash, Smoak & Stewart,... on 4/9/2013

Terminations in Brazil are tricky enough. If “just cause”—which is statutorily established and defined—does not exist, an employer can be on the hook for quite a bit, including indemnities and taxes tied to the balance in the...more

FCA Provides Guidance On Role Of Intent In Determining Status Of Worker

by Timothy Fitzsimmons | Dentons on 4/9/2013

The role of intent in the determination of whether a worker is an employee or independent contractor has taken on greater significance in the last decade or so. However, despite a series of decisions on the issue from the Tax...more

A Court has Ruled that Severance May Not be subject to FICA, Therefore You and Your Company May Be Owed a Tax Refund!

by Valerie Menager | Carr, McClellan, Ingersoll, Thompson & Horn -... on 3/27/2013

The Sixth Circuit Court of Appeals recently held that severance paid to employees in a reduction in force event is not subject to FICA taxes. United States v. Quality Stores, Inc. No. 10-1563 (6th Circuit, September 7, 2012)....more

Successful Judicial Review Of Taxpayer Relief Application: NRT Technology Corp V. AG Canada

by Sophie Virji | Dentons on 3/12/2013

The taxpayer in this case, NRT Technology Corp, successfully applied before the Federal Court for judicial review in respect of a decision of an Assistant Director of the Toronto Tax Services Office of the Canada Revenue...more

Section 409A Tax Assessed An Discounted Stock Options – Taxpayer Sues For Refund In Federal Court Of Claims

by Jeffrey P. Cairns | Leonard, Street and Deinard - Employee... on 3/8/2013

Code Section 409A which was effective in January 1, 2005, provides strict rules that must be applied to most deferred compensation arrangements accruing benefits after the effective date. Failure to comply with the Code and...more

File for FICA Tax Refunds Before April 15

by Sheppard Mullin Richter & Hampton LLP on 2/20/2013

As previously reported, the payment of certain severance benefits may be exempt from FICA taxes. Under the Sixth Circuit’s decision in Quality Stores, severance pay made in connection with an involuntary separation from...more

Tax Alert: FTB Disallows California Qualified Small Business Stock Benefits

by Adam Halpern, Andrew Kim, Ronald Schrotenboer | Fenwick & West LLP on 2/5/2013

The California Franchise Tax Board (FTB) recently issued FTB Notice 2012-03, stating that the FTB will disallow the exclusion or deferral of gain under California's qualified small business stock (QSBS) statute for all tax...more

Delaware Supreme Court Affirms Denial of Attorneys' Fees Relating to Corporate Waste Claim Based on a Board's Decision to Forego...

by Michael D. Redondo | Holland & Knight LLP on 1/29/2013

On January 14, 2013, the Delaware Supreme Court affirmed a trial court's denial of attorneys' fees in connection with a corporate waste claim filed against corporate board members for the board's decision to pay certain...more

Independent Contractor Or Employee – It Can Depend Upon Who Has The Burden Of Proof

by Angela Bohmann | Leonard, Street and Deinard - Employee... on 1/25/2013

Those of us who work in the benefits area understand that the distinction between employee and independent contractor is an important one, but one in which the determination is not always clear. In many cases, the IRS takes...more

NLRB Gets Busy – Part 1 NLRB Departs From Decades Of Precedent

by Michelle Bush, Charles Einsiedler, Jr. | Pierce Atwood LLP on 1/22/2013

The close of 2012 brought a flurry of activity by the National Labor Relations Board and the Board has not slowed down in the New Year. Several of the Board’s recent decisions mark significant departures from decades of...more

Sixth Circuit Will Not Rehear Quality Stores Decision that Severance Pay in Connection with a Reduction in Force is not Subject to...

by Paul M. Hamburger, Elizabeth Mills, Andrea Rattner | Proskauer Rose LLP on 1/21/2013

On September 7, 2012, the Sixth Circuit Court of Appeals held in United States v. Quality Stores, Inc. that severance payments to former employees pursuant to an involuntary reduction in force are not taxable "wages" for...more

Employers May Be Entitled to FICA Tax Refund On Severance Payments

by Dinsmore & Shohl LLP on 11/28/2012

If the recent decision of the Sixth Circuit Court of Appeals in United States v. Quality Stores survives appeal by the IRS, employers could be entitled to a refund of FICA taxes paid by them after 2008 on severance payments...more

Government Challenges Sixth Circuit Decision in Quality Stores, Inc.

by Vicki M. Nielsen | Ogletree, Deakins, Nash, Smoak & Stewart,... on 11/5/2012

On October 18, 2012, the U.S. Department of Justice filed a petition for rehearing en banc in the Sixth Circuit Court of Appeals in United States v. Quality Stores, Inc., No. 10-1563 (September 7, 2012), asking the full court...more

Quality Stores, Inc. Update

by Morgan Lewis on 10/24/2012

Department of Justice files petition for rehearing en banc, challenging the Sixth Circuit's recent decision that severance payments paid pursuant to an involuntary reduction in force are exempt from FICA taxes. On...more

Sixth Circuit: Downsizing Payments Are Not FICA-Taxable Wages

by Morgan Lewis on 9/27/2012

Court holds that severance payments paid pursuant to an involuntary reduction in force are exempt from FICA taxes, allowing companies subject to these taxes to file refund claims....more

Do members of an advisory board hold an “office” for purposes of Canadian tax law?

by Dentons on 7/5/2012

On April 26, 2012, Justice J.E. Hershfield of the Tax Court of Canada heard arguments in Nuclear Waste Management Organization v. The Queen in respect of a reassessment under the Canada Pension Plan (the “Plan”). In written...more

For Corporations, a "Virtual Office" in New Jersey Can Lead to an Actual Tax

by Cole Schotz on 4/20/2012

For out-of-state corporations that do business in New Jersey through the use of “virtual offices,” the recent decision by the Appellate Division of the Superior Court of New Jersey in Telebright Corporation, Inc. v. Director,...more

ESOP LEGAL NEWS - April 2012 • Volume 1, Number 2

by Dickinson Wright on 4/20/2012

INSIDE THIS ISSUE: The ESOP Association submits comments on corporate tax reform to House committee; ESOP champion Olympia Snowe not running for reelection; Pro-ESOP legislation garners support; Bear Stearns agrees to...more

Employment and Wage and Hour Law Newsletter™ - March 2012

by Low, Ball & Lynch on 4/2/2012

In This Issue: • Notes From The Editor • Correctly Classifying Employees As Exempt Or Non-Exempt In Order To Avoid Litigation • Independent Contractor Or Employee: The Control Test • The Importance Of Effective...more

ESOP Legal News- March 2012

by Dickinson Wright on 3/23/2012

INSIDE THIS ISSUE: White House corporate tax reform may eliminate certain ESOP tax benefits; Iowa house passes pro-ESOP legislation; White House budget proposes clarification of 1042 rollover; official discusses...more

Week of February 6, 2012 on ILN Today - Roundup!

by International Lawyers Network on 2/10/2012

Happy Friday all! It's been a very busy week here at the ILN, which makes me feel as though this is a well-deserved weekend ahead. On to the roundup - because it's been so busy this week, I'm going with a top...more

Tax Topics - January 19, 2012

by Dentons on 1/19/2012

In This Issue 1 “He Who Wants A Rose Must Respect The (Cop)Thorn(E)” 2 IC99-1, Registered Disability Savings Plans . . . . 4 3 Information Exchange Agreement with Dominica . . . . 4...more

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