December 13, 2012

In this issue, we address tax planning opportunities resulting from the recent Federal Court of Appeals decision in U.S. v. Quality Stores, Inc., No. 10-1563 (6th Cir., 9/7/2012). This landmark case potentially impacts both workers that have been laid off and businesses that have had to downsize. In Quality Stores, the court held that certain severance payments should not be subject to FICA employment taxes. This decision resulted in a refund of over $1 million to Quality Stores and its employees.

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