Kiplinger Newsletter Tax alert

Real Estate Broker/Owner with Marie Bost~Broker~Edisto Real Estate

Just received this from my ekiplinger newsletter, thought you might find this of interest if you own a small business like I do.


New Kiplinger Audio Conference...

Tax Alert: 

File a refund claim NOW for FICA taxes paid on severance pay

There's some stunning news on payroll taxes for companies that are currently downsizing or have laid off workers in the past four years:

Severance pay for laid off employees isn't subject to Social Security taxes, according to a new District Court decision (U.S. v. Quality Stores, Inc.).  Here's what it means to you: 

If your company laid off any employees since 2006 and paid FICA taxes on their severance pay, you may qualify for a substantial refund... plus interest.   

Discover all you need to know to recoup FICA taxes paid on severance pay dating back to 2006 by attending Kiplinger's 60-minute Special Tax Alert interactive audio conference on April 1, 2010.

 Join tax law expert Mary B. Hevener, a partner in Morgan Lewis's Employee Benefits and Executive Compensation Pratice, as she takes you step by step through the process of claiming your FICA tax refund from the IRS, including:

 •·         How the new District Court ruling could lead to a refund of all FICA taxes you paid on severance to involuntarily separated employees since 2006,

•·         What a protective refund claim is and how to file one,

•·         Why it's critically important that certain employers file by April 15, 2010,

•·         What your obligations are to terminated employees before you can collect your refund,

•·          Whether involuntarily terminated employees can file claims on their own (if their former employer may not file such a claim),

•·         And much more.

Best of all, you and as many of your staff as you wish can attend this Special Tax Alert audio conference for one low price.

You get expert advice. Ms. Hevener focuses her practice on benefits provided to employees and independent contractors outside of qualified retirement plans, including stock options and other stock-based compensation; executive income deferrals; golden parachutes; and a range of fringe benefits, from health and life insurance to employee loans, cars, planes, and prizes.

She advises large U.S. and multinational companies on minimizing payroll taxes and maximizing corporate deductions with respect to worker benefits.  Ms. Hevener has dealt with executive benefits triggered by corporate mergers, acquisitions, and spinoffs, including golden parachute issues and stock option deduction allocations. She counsels on information reporting, compensation plan design, employment contracts, corporate and payroll tax audits, penalty abatements, and IRS ruling requests.

In addition,  Ms. Hevener also has assisted with numerous tax litigations of first impression, including the payroll taxation and deduction of employee meals, the deductibility of corporate aircraft, income tax withholding, FICA taxation of tax-qualified stock options, and the tax treatment of payments to former employees made outside of qualified retirement plans.

Prior to joining Morgan Lewis, Ms. Hevener was a partner in the tax practice of a large international law firm, and, before that, she served as a partner in two other large law firms. From 1981 through 1984, she served as an attorney advisor for the U.S. Treasury Department's Office of the Tax Legislative Counsel, where she focused on tax issues affecting current and deferred employee benefits (including parachute payments) and tax-exempt organizations. Ms. Hevener also worked on legislation and IRS guidance affecting alternative minimum taxes, social security taxes, and a variety of excise taxes.

Ms. Hevener currently serves as a member of the advisory board of New York University's Institute on Federal Taxation, and is a frequent speaker before the Tax Executives Institute. She formerly served on a volunteer basis as one of the original members of the Information Reporting Program Advisory Committee to the Internal Revenue Service.









It's convenient. Listen in from your office as our experts explains how to claim your FICA refund.




It's interactive. The 90-minute audio conference will feature 60 minutes of discussion by the presenter, followed by a 30-minute Q&A period during which you can ask questions concerning your specific needs.



It's affordable.

As many of your staff as you wish can participate at one low cost. All will be covered under the single low rate for Kiplinger subscribers.

Visit to save up to $30! Further information on the audio conference is listed below.

Tax Alert: 

File a refund claim NOW for FICA taxes paid on severance pay



Comments (1)

Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Dear Marie,

what a great post, thanks for sharing the Kiplinger Newsletter.  All the best!

Mar 11, 2010 02:56 AM