Investment bank/broker-dealer insolvencies

In light of the recent Chapter 11 bankruptcy filing by Lehman Brothers Holdings Inc. and the subsequent determination of the Securities Investor Protection Corporation (SIPC) to commence a proceeding placing Lehman Brothers Inc.

Filed under:
USA, Banking, Capital Markets, Insolvency & Restructuring, Hogan Lovells, Bankruptcy, Debtor, Security (finance), Swap (finance), Margin (finance), Debt, Investment banking, Liquidation, Broker-dealer, Liquidator (law), US Securities and Exchange Commission, Lehman Brothers, Securities Investor Protection Corporation, Securities Exchange Act 1934 (USA), Title 11 of the US Code
Location:
USA
Firm:
Hogan Lovells
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