Labor & Employment Tax Civil Remedies

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Court Affirms Costs against Plaintiffs Following Contentious Discovery (Pennsylvania)

Kuznyetsov v. West Penn Allegheny Health Sys., 2014 WL 5393182 (W.D. Penn. Oct. 23, 2014). In this Fair Labor Standards Act case, “[d]iscovery was contentious and the motions practice was excessive. As a result, a...more

IRS Scripts a New Tune with Final Whistleblowing Regulations

Section 7623 of the Internal Revenue Code (the “Code”), added in 1954, authorizes the Treasury Secretary to pay an award as he deems necessary for “(1) detecting underpayments of tax, or (2) detecting and bringing to trial...more

IRS amends whistleblower regulations to expand eligible whistleblowers and potentially increase award amounts

Whistleblower incentives and awards are not unique to the False Claims Act or Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. On August 12, 2014, the Internal Revenue Service (“IRS”)issued long-awaited...more

News from the Health Law Gurus™

Former Walmart Exec to Help Manage HHS — Leslie Dach, former Executive Vice President of Corporate Affairs for Walmart, will assume the role of Senior Counsel of the HHS, according to a press release on Wednesday. ...more

Appelate Court Notes

AC35823 - Stratford v. Wilson - When Mayor allegedly overpaid a departing employee as he was leaving office himself, the town sued the former employee under the action of “indebitatus assumpsit for money had &...more

Pension News

Welcome to DLA Piper’s Pensions News publication in which we report on recent developments in pensions legislation, guidance and case law, as well as keeping you up to speed on what to look out for in the coming months. This...more

Whistleblowers Could be the First Responders Against Fraud

We knows who the first responders are. When a student opened fire at a Nevada middle school on Monday morning, October 21, 2013, teacher Michael Landsberry sacrificed his life to protect the children in the school. Teacher...more

With Tax Season Looming, Appellate Division Refuses to Find Duty to Defend Against IRS Action

In William B. Kessler Memorial Hosp., Inc. v. North River Ins. Co., 2013 WL 6036678 (N.J. Super. Nov. 15, 2013), the Superior Court of New Jersey, Appellate Division, rejected the notion that an insurer’s promise to “defend...more

Preserve Your Right To A Payroll Tax Refund

A disagreement between two federal appeals courts regarding whether payroll taxes must be paid on severance payments made to laid-off workers has landed the issue in front of the U.S. Supreme Court. Oral arguments began...more

U.S. Tax Court Decision Shows Importance of Carefully Drafting Settlement Agreements

In Sharp v. Commissioner, the United States Tax Court once again demonstrated the importance of carefully crafting settlement agreements and reaffirmed that emotional distress damages are taxable income to the recipient....more

Settling a Lawsuit with an Employee or Former Employee? Don’t Forget the Tax Consequences

The IRS recently issued guidance that may be of particular interest to anyone with employees or former employees. In a Legal Advice issued by Field Attorneys (LAFA 20133501F), the IRS explained the tax treatment and reporting...more

IRS Confirms its Position that Settlement Payments Allocated to Attorneys’ Fees are Not Wages

Employers frequently ask whether the portion of an employment-related settlement allocated to attorneys’ fees must be treated as wages and subjected to income and employment tax withholding and Form W-2 reporting where a...more

New IRS Guidance On Tax Treatment Of Attorney’s Fees

The IRS recently released a memorandum advising taxpayers on the proper tax characterization of attorney’s fee payments in connection with a settlement of or judgment in an employment dispute. Courts have long held...more

IRS Reaffirms Advice on the Proper Employment Tax Treatment of Settlements

On August 30, 2013, the IRS reiterated its longstanding positions on the proper tax treatment of litigation settlements with current or former employees. In its Chief Counsel Advice (CCA) Memorandum 20133501F, the IRS...more

IRS Says Class Action Settlement Incentive Awards in Wage Based Claims Are Taxable As Wages

On March 15, 2013, the IRS issued a private letter ruling responding to a request for a determination of whether incentive awards paid to class representatives under a settlement agreement resolving a class action suit...more

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

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

Married Same-Sex Couples Should File Protective Claims For Tax Refunds Now

When the Supreme Court ultimately decides United States v. Windsor, it could strike down the portion of the Defense of Marriage Act (DOMA) that prohibits married same-sex couples from receiving the federal benefits provided...more

Deadline for Filing FICA Tax Refunds is April 15

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

File for FICA Tax Refunds Before April 15

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

IRS "Fresh Start Program" Offers More Taxpayers Greater Opportunity to Resolve IRS Debts

If you currently owe back income and/or payroll taxes, the Internal Revenue Service's (IRS) recently initiated "Fresh Start Program" may now make either (1) the installment agreement or (2) an Offer in Compromise (OIC) a more...more

A Month in UK Employment Law - January 2013

In This Issue: - 2013 – What's On the Horizon - Changes Confirmed - Changes Expected In 2013 But No Implementation Date ...more

Employers Should Evaluate Refund Opportunities Following Sixth Circuit Ruling on FICA Taxes and Severance Payments

In United States v. Quality Stores, Inc., the Sixth Circuit held that payments of supplemental unemployment benefits (SUB payments) are not taxable wages subject to FICA tax withholding. Although the issue is not finally...more

Possible FICA Tax Savings on Severance Pay

A recent Sixth Circuit Court of Appeals decision concluded that severance pay provided to employees as a result of layoff or discontinuance of a plant, operations or other similar condition is exempt from FICA taxes....more

Second Circuit Confirms That Title VII Discrimination Awards are Taxable

Recently, the Second Circuit Court of Appeals confirmed that awards of back pay and front pay under Title VII constitute “wages” under the Internal Revenue Code and are therefore subject to statutory withholding requirements....more

Taxes are Inevitable … Even on Judgments For Front and Back Pay in Discrimination Cases

Everyone knows that taxes are inevitable. Except perhaps one employee who won his Title VII case but complained that the employer shouldn’t have made withholdings for taxes when it paid out the judgment. The Second Circuit,...more

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