The Supreme Court of the United States has decided in favor of the Internal Revenue Service in United States v. Quality Stores, Inc., holding that severance payments made pursuant to plans that did not tie payments to the receipt of state unemployment insurance are subject to Federal Insurance Contributions Act (FICA) tax. The decision overturns a taxpayer-friendly decision from the U.S Court of Appeals for the Sixth Circuit, which, if upheld, could have resulted in FICA tax refund claims to individuals and employers.
Supreme Court Decides in Favor of IRS in Quality Stores: FICA Generally Applies to Severance Payments
Posted In Benefit Controversies
Anthony A. BongiornoAnthony (Tony) A. Bongiorno has extensive jury trial experience in a variety of commercial matters and serves as the partner-in-charge of the Firm’s Boston office. Tony has successfully tried cases in various federal and state courts around the country. In addition to his significant jury trial experience, Tony has also tried matters under the auspices of the American Arbitration Association, the International Centre for Dispute Resolution and the International Chamber of Commerce. Tony has represented clients in many industries, including energy, health care, biotech and construction. Read Anthony A. Bongiorno's full bio.
Jeffrey HoldvogtJeffrey (Jeff) M. Holdvogt advises clients regarding a wide range of employee benefits matters. He focuses primarily on the design and administration of complex pension, defined contribution and executive deferred compensation arrangements. Jeff counsels privately and publicly held corporations on ongoing day-to-day retirement and executive compensation issues, as well as employee benefits design and transition matters arising from corporate mergers, acquisitions and divestitures. Read Jeff Holdvogt's full bio.
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