Revenue Ruling 90-72

IRS Announces That It Will No Longer Refund FICA Taxes on Severance Payments

Pen and Calculator

The IRS recently announced that severance payments are taxable wages under FICA, and thus employers who seek tax refunds on those payments will be denied.  The IRS’s position reflects the United States Supreme Court’s ruling in United States v. Quality Stores, Inc., issued in March of last year.

READ MORE