Quality Stores. The IRS will appeal the 6th Circuit’s decision in U.S. v. Quality Stores to the U.S. Supreme Court. Bartels said the IRS just needs a little more time to file the necessary papers with the Court. Recap: The 6th Circuit ruled that a bankrupt employer’s severance pay plan qualified as FICA-free supplemental unemployment benefits (SUB pay), even though the plan didn’t meet the IRS’ criteria for SUB pay, as outlined in IRS Pub. 15-A.
Meanwhile, the IRS is holding all of employers’ protective FICA refund claims until the issue is settled, Bartels added.
Additional Medicare tax. In IRS speak, the 0.9% additional Medicare tax is known as the AdMT. Bartels reviewed the basics of this tax. It’s em...(register to read more)