United States: IRS Addresses Application Of Quality Stores To Claims Of Employment Tax Refunds

In United States v. Quality Stores, Inc., 134 S. Ct. 1395 (2014), the U.S. Supreme Court ruled that severance payments at issue in the case were wages subject to Federal Insurance Contributions Act (FICA) taxes. The Court’s ruling reversed a decision by the Sixth Circuit Court of Appeals that held that severance payments made by the taxpayer, Quality Stores, were not subject to FICA taxes.

In the years between the Sixth Circuit’s ruling and the […]

By |March 4th, 2015|

Canada: Reservations To Landlord Consistent With Leasehold Interest For Purposes Of Assessment Act

In Exchange Corporation Canada Inc. v. Mississauga (City),1 Exchange Corporation Canada Inc. (“Exchange”) operates kiosks in various terminals at Toronto Pearson International Airport (the “Airport”) pursuant to a 2003 agreement (the “Agreement”) with the Greater Toronto Airports Authority (the “GTAA”).  Exchange carries on the business of providing currency exchange and travel insurance services.

In 2006, the City of Mississauga (the “City”) and the Municipal Property Assessment Corporation issued notices of omitted assessment to Exchange for […]

By |March 3rd, 2015|

United States: IRS Provides Transition Relief From Penalties For Certain Health Reimbursement Arrangements

In fall 2013 the IRS issued Notice 2013-54 to provide guidance on how the market reforms of the Affordable Care Act (ACA) apply to health reimbursement arrangements (HRAs). That guidance provided that an HRA that is used to purchase health coverage on the individual market will fail to comply with the annual dollar limit prohibition of the ACA.

Beginning in 2014, this failure results in a penalty of $100 per day, per affected employee (i.e., […]

By |March 3rd, 2015|