The U.S. Supreme Court, in a unanimous decision, reversed a lower court’s decision regarding the treatment of certain severance payments for FICA taxes. The Supreme Court said severance payments are taxable wages for FICA purposes. Any protective refund claims filed with the IRS for FICA payments on severance benefits are now ineffective.
Tax deadlines approaching fast … be sure and check out my tax books today – find the complete list of books here. Plus, find the NEW supplements for each tax book right here on my site: J.K. Lasser’s Small Business Taxes 2014 and J.K. Lasser’s 1001 Deductions and Tax Breaks 2014.