Severance Pay, IRS | JD Supra Law News

Deadline for Filing FICA Tax Refunds is April 15

by Sheppard Mullin Richter & Hampton LLP on 4/5/2013

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

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

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

Legal Alert: The 2012 Tax Litigation Year in Review: Important Events

by N. Jerold Cohen, Thomas Cullinan, Joseph DePew, Kendall Jones, John Lanier, Jerome Libin, Shane Lord, Mary Monahan, Victoria O’Connor, Daniel Schlueter, Jeffrey Starkey | Sutherland Asbill & Brennan LLP on 1/16/2013

The year 2012 was quite an interesting one for tax controversy. Whereas 2011 brought a win for the Treasury on deference issues in Mayo Foundation for Medical Ed. v. United States, 131 S. Ct. 704 (2011), 2012 was the year...more

Court Holds Severance Payments Not Subject To FICA Taxes; Refund Claims Should Be Filed Soon

by Brian M. Johnston, D. Scott Lindstrom, William J. Sanders, David N. Zimmerman | Polsinelli on 12/17/2012

In its recent decision, the United States Court of Appeals for the Sixth Circuit in U.S. v. Quality Stores, Inc., No. 10-1563 (6th Cir., 9/7/2012) held that certain severance payments made to former employees were not subject...more

Sixth Circuit Nixes FICA Tax on Severance Pay

by Dickinson Wright on 10/22/2012

The U.S. Court of Appeals for the Sixth Circuit has affirmed a Michigan Bankruptcy Court and approved a taxpayer’s request for a refund of FICA taxes paid on behalf of former employees. Quality Stores et al....more

December 31 Section 409A Correction Deadline for Severance Pay Approaching

by Benjamin I. Delancy, Ann Carr Mackey | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/17/2012

The Internal Revenue Service(IRS) has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. If the problem is not addressed by that date, then it...more

IRS Penalty Relief For Severance Pay Expires On December 31

by Benjamin I. Delancy, Ann Carr Mackey | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/17/2012

The IRS has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. If not corrected by that date, it could be much more expensive to correct the...more

FICA Taxes on Certain Severance Pay May Be Refundable

by Foley & Lardner LLP on 10/16/2012

The IRS may owe FICA tax refunds on severance payments made by employers to laid-off or terminated employees as part of reductions in workforce. Every employer that paid severance to laid-off employees as part of a reduction...more

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

by Ballard Spahr LLP on 10/12/2012

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

Sixth Circuit Decision Offers FICA Tax Refund Opportunities for Severance Pay

by Vicki M. Nielsen | Ogletree, Deakins, Nash, Smoak & Stewart,... on 9/11/2012

Any employer that implemented reductions in force or layoffs after 2008 should consider filing refund claims for the Federal Insurance Contributions Act (FICA) taxes paid on severance benefits based on a recent Sixth Circuit...more

Pepper Victory: Sixth Circuit Holds that Supplemental Unemployment Compensation Benefits Are Not ‘Wages’ Subject to FICA Taxation

by Pepper Hamilton LLP on 9/10/2012

In an important recent decision, United States v. Quality Stores, Inc., et al., in which Pepper represented the prevailing party, the U.S. Court of Appeals for the Sixth Circuit held that supplemental unemployment...more

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Severance Pay › Internal Revenue Service