Marianna Dyson Quoted Regarding FICA Tax Refunds on Lump-Sum Termination Pay in Reuters

"Update 2 - U.S. Supreme Court to weigh taxability of severance pay"
10.01.13Marianna Dyson is quoted regarding the issue of whether severance pay to laid-off workers is subject to Federal Insurance Contributions Act (FICA) taxes. The U.S. Supreme Court agreed to review the decision of the U.S. Court of Appeals for the Sixth Circuit (September 2012 ), which held that Quality Stores and its former employees could claim a FICA tax refund on lump-sum termination pay. The FICA tax treatment of severance pay, "rose from the ashes like the phoenix because of the recession," Dyson said. The case, United States v. Quality Stores Inc., has implications for companies that paid and withheld FICA taxes on severance pay to laid-off workers during the 2007-2009 recession and have filed refund claims in the event the Court rules in favor of Quality Stores. According to the Administration, there are more than 2,400 refund claims claiming over $1 billion in FICA taxes pending on this issue. Oral arguments and a decision are forthcoming in the Court's 2013-2014 term.
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