New decision supports FICA exclusion for severance paid in RIF or plant closing

A recent decision provides new support for excluding a broad range of severance pay from FICA taxes—a position undercut by the taxpayer’s loss in CSX Corp. v. United States, 518 F.3d 1328 (Fed. Cir. 2008). United States v. Quality Stores Inc., (W.D. Mich., Feb. 23, 2010), affirms a bankruptcy court’s conclusion that, contrary to Revenue Ruling 90-72, 1990-2 C.B.

Filed under:
USA, Michigan, Employment & Labor, Insolvency & Restructuring, Litigation, Tax, Hogan Lovells, Wage, Federal Reporter, Income tax, Unemployment benefits, Federal Insurance Contributions Act tax, Severance package, Internal Revenue Service (USA), United States bankruptcy court, Federal Circuit
Authors:
Carin C. Carithers , Margaret de Lisser , Kurt L.P. Lawson , William L Neff , Joseph R. Rackman
Location:
USA
Firm:
Hogan Lovells