In the recent United States Tax Court case O’Connor v. Commissioner of Internal Revenue, Judge Arbeit sanctioned the petitioner for advancing frivolous arguments contesting the authority of the IRS to assess tax....more
5/20/2025
/ Constitutional Challenges ,
Employees ,
Employer Liability Issues ,
Employer Responsibilities ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Penalties ,
Reporting Requirements ,
Sixteenth Amendment ,
Tax Court ,
Tax Liability ,
Wage and Hour
The Internal Revenue Service has released new guidance, Rev. Rul. 2025-3, clarifying the application of Section 530 of the Revenue Act of 1978, Section 3509 of the Internal Revenue Code (IRC), and Section 7436 of the IRC in...more
The IRS’s recently released Revenue Ruling 2025-4 provides significant guidance on the employment tax treatment of contributions to and benefits paid under state paid family and medical leave (PFML) programs. This has been an...more
1/23/2025
/ Compliance ,
Corporate Taxes ,
Employee Benefits ,
Employment Tax ,
Family Medical Leave ,
Income Taxes ,
IRS ,
Paid Leave ,
Reporting Requirements ,
State Labor Laws ,
Tax Liability
Every year the IRS National Taxpayer Advocate Service (TAS) issues its Annual Report to Congress that discusses the ten most serious issues taxpayers faced during the past year in their dealings with the IRS, among other...more
The wildfires ravaging various parts of Los Angeles County are truly tragic and expected to cost more than $50 billion in damages, making it the most expensive natural disaster ever in the United States. For employers with...more
While we may reset our clocks in March and November each year, every January 1 we reset our tax clocks. Here is a short list of what is changing:
Social Security Wage Base Limit: $176,100...more
Dear Littler,
We’d like to provide gifts to our staff for the holidays but are unsure which types of gifts would trigger tax obligations for our employees. We’d also like to offer donation matching for our employees’...more
A new General Labor Law (NGLL) was enacted by Law No. 12/23, of 27 December 2023, which came into force on March 26, 2024.The NGLL repealed the former General Labor Law (approved by Law No. 7/15, of June 15, 2015),...more
The IRS has issued a new fact sheet (FS-2024-22) to address frequently asked questions about educational assistance programs (EAPs), also known as Section 127 plans....more
The IRS recently updated its guidance for completing Form 1099-K, used primarily by “gig” companies providing compensation using payment apps or online marketplaces and for individuals selling goods on online marketplaces...more
In Escano v. Innovative Financial Partners, LLC, a magistrate judge held that the defendants’ decision to withhold funds from a payment required under a settlement agreement when the plaintiff refused to provide a Form W-9...more
1/29/2024
/ Attorney's Fees ,
Employer Liability Issues ,
Employment Litigation ,
Fee-Shifting ,
Form W-9 ,
Internal Revenue Code (IRC) ,
IRS ,
Required Forms ,
Settlement Agreements ,
W-4 ,
Withholding Requirements
On July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the...more
On June 15, 2023, Nevada Governor Joe Lombardo signed SB 290, which requires early wage access (EWA) providers to obtain a license from the Commissioner of Financial Institutions. This is the first EWA law enacted by any...more
In an opinion issued on June 20, 2023, the United States Court of Federal Claims reminded taxpayers that they must obtain a certificate of coverage in order to claim an exemption from Social Security and Medicare taxes (FICA)...more
The Global Guide Quarterly (GGQ) is a newsletter Littler publishes on a quarterly basis to provide a general update on global labor and employment (L&E) law developments in key countries in the American, EMEA, and APAC...more
As part of the 2017 Tax Cuts and Jobs Act (Act), Congress enacted Internal Revenue Code (Code) section 6050X, which requires government agencies (and certain nongovernmental regulatory agencies) to issue information returns...more
On December 14, 2022, the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) signed and published a Memorandum of Understanding for Employment Tax Referrals (the “MOU”). The MOU establishes a system for...more
12/28/2022
/ Corporate Counsel ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Gig Economy ,
Independent Contractors ,
IRS ,
Memorandum of Understanding ,
Misclassification ,
Tax Liability ,
Tax Penalties ,
Wage and Hour
On June 9, 2022, the Internal Revenue Service issued Announcement 2022-13, increasing the optional standard mileage rate for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile. The new rate will be...more
On November 10, 2021, the IRS released Revenue Procedure 2021-45, which contains its annual inflation adjustments for over 60 tax provisions, including not only individual income tax rates and deductions, but also many...more
11/10/2021
/ 401k ,
403(b) Plans ,
457(b) Plans ,
Compensation & Benefits ,
Employee Benefits ,
Fringe Benefits ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Retirement Plan ,
Tax Deductions
Effective October 1, 2021, the New Jersey Division of Taxation (the “NJDT”) ended the temporary relief period with regard to employers’ obligation to withhold income taxes for teleworking employees who work in New Jersey.1 ...more
Dear Littler: You alerted us to some wage & hour and leaves & benefits issues stemming from our “wandering workers” who have scattered across the country during the pandemic, yet continue to work for our Texas-based company....more
Executive Summary -
The COVID-19 pandemic required nearly every employer around the globe to take stock of its workforce, policies and practices, and adapt to a rapidly changing and unpredictable environment. COVID-19...more
In Stassi v. Commissioner, the United States Tax Court found that a settlement was not excludable from income as a personal physical injury because the taxpayer failed to demonstrate that her shingles was caused by her...more
On August 28, 2020, the U.S. Department of the Treasury issued guidance for employers with respect to the deferral of the employee portion of certain payroll taxes. This guidance stems from a presidential memorandum issued...more
In Notice 2020-46, the IRS explains how employees can forgo their paid time off balances to allow their employers to make donations to charities that are assisting individuals impacted by the COVID-19 pandemic....more