Topic: IRS

IRS Takes the Position That No Statute of Limitations for ACA Employer Shared Responsibility Payments

In a surprising memo from the IRS Office of Chief Counsel, the IRS concluded that there is no ‎statute of limitations period on the Employer Shared Responsibility Payments (“ESRP”) under ‎the Affordable Care Act. The IRS reasoned that the filing of Forms 1094-C and 1095-C (“ACA ‎Returns”) does not start the statute of limitations period because such forms do not satisfy the ‎requirements to be considered a tax return.‎

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Employers May Offer Tax-Free Financial Assistance to Employees Affected By Coronavirus under Internal Revenue Code Section 139

On March 13, 2020, President Trump declared a national emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the “Stafford Act”) in response to the Coronavirus Disease 19, or COVID-19.  This declaration allows employers to make qualified disaster relief payments to employees affected by COVID-19 on a tax-free basis pursuant to Section 139 of the Internal Revenue Code (the “Code”).

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High-deductible Health Plans May Cover COVID-19 (Coronavirus) Costs

To facilitate the nation’s response to the 2019 Novel Coronavirus (COVID-19), also known as the Coronavirus, the Internal Revenue Service advised in IRS Notice 2020-15 that a high-deductible health plan (HDHP), until further notice, is permitted to pay for COVID-19-related testing and treatment, without jeopardizing its status as an HDHP.  Additionally, contributions to an HDHP participant’s health savings account (HSA) will not be adversely affected if the HDHP covering the participant provides for coverage of costs for COVID-19-related testing or treatment‎.

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What Employers Should Know About the New W-4 Form

‎2020 has brought substantial changes to the Form W-4 (Employee’s Withholding Certificate) ‎compared with previous versions of the form. These changes were made by the IRS to comply ‎with new income tax withholding requirements under the Tax Cuts and Jobs Act (Pub. L. 115-‎‎97). ‎

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Best Practices for Handling and Avoiding Employee Benefit Plan Investigations

The prospect of a U.S. Department of Labor (“DOL”) investigation or Internal Revenue Service ‎‎(“IRS”) examination of an employee benefit plan can be daunting for any plan sponsor. ‎Understanding the process and adopting best practices, however, can make the experience less ‎intimidating and improve the results for all parties.‎

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Overview of Proposed Regulations Under Code Section 162(m) – What is Applicable Employee Remuneration

This installment of the overview of the Proposed Regulations under Code Section 162(m) focuses on the definition of what is “applicable employee remuneration.” As a ‎reminder, Code Section 162(m) generally limits the compensatory deduction to the first $1 million of “applicable employee remuneration” paid by a publicly held corporation to each covered employee.

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Overview of Proposed Regulations Under Code Section 162(m) — Who is a Covered Employee

Today’s installment of our overview of the Proposed Regulations under Code Section 162(m) highlights the expansion of who is a “covered employee.”  As a ‎reminder, Code Section 162(m) generally limits the compensatory deduction to the first $1 million of compensation paid by a publicly held corporation to each “covered employee.” 

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Holiday Stocking Stuffer: IRS Issues Proposed Regulations Under Code Section 162(m)

On December 16, 2019, the Treasury Department released proposed regulations (the “Proposed ‎Regulations”) to address the amendments made to Code Section 162(m) by the Tax Cuts and ‎Jobs Act (the “Amendment”). As background, the Amendment eliminated the exclusion ‎attributable to qualified performance-based compensation from the $1 million cap on the ‎deductibility of compensation paid to certain executives by a publicly held corporation.‎

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