COBRA premium assistance credit clarified further
The IRS has supplemented its guidance on COBRA premium payment assistance and the corresponding business tax credit under the American Rescue Plan Act.
Employee Benefits
Penalty relief for payroll tax deposits allows immediate use of pandemic credits
The IRS provided for penalty relief under Sec. 6656 for an employer’s failure to timely deposit certain employment taxes with the IRS to allow employers to immediately take advantage of various credits enacted in response to the COVID-19 pandemic.
Supreme Court lets health care law stand
The US Supreme Court held that Texas and several other states lacked standing to sue over the constitutionality of the Sec. 5000A mandate that requires individuals to obtain minimum essential health coverage. The decision leaves the Affordable Care Act in place.
Stock-based compensation cost-sharing regs. following Altera
The Supreme Court’s denial of Altera’s petition could have significant tax and financial reporting consequences for companies that have excluded SBC costs from CSA intangible development cost pools.
Planning considerations for cross-border compensatory equity
Compensatory equity, such as company stock, held by employees that was acquired in connection with the performance of services may result in unexpected issues.
Compensatory split-dollar life insurance benefits are compensation
Economic benefits from a compensatory split-dollar life insurance arrangement are not property distributions.
COBRA premium assistance credit under ARPA clarified
The IRS answered questions concerning COBRA continuation coverage premium assistance and the corresponding tax credit that employers, plan administrators, and insurers may claim under the American Rescue Plan Act.
IRS clarifies pandemic relief for dependent care assistance programs
Dependent care assistance program benefits carried over or available during an extended claims period under special temporary COVID-19 relief provisions retain their status as excludable from employees’ gross income and wages, the IRS explains in a notice.
2022 HSA, excepted-benefit HRA amounts increase slightly
Maximum health savings account annual contributions will increase by $50 to $3,650 for self-only and $100 to $7,300 for family coverage for 2022. Inflation adjustments in Rev. Proc. 2021-25 also increase maximum out-of-pocket expenses for high-deductible health plans.
Cafeteria plans may be amended during pandemic
The IRS issued guidance on how employers can amend their health flexible spending arrangements and dependent care assistance programs to respond to the coronavirus pandemic.
How to preserve retirement plan company matches
CPAs can play a vital role in helping plan sponsors cut costs and make the best of a challenging situation so the business can keep its company retirement plans intact.
SEP plans: A cautionary tale about IRS audits
An employer’s failure to comply with SEP rules results in very costly penalties.
Supervisory approval not needed for Sec. 72(t) additional tax
The Sec. 72(t) additional tax on early distributions is not a penalty that requires written supervisory approval.
Practical highlights of recent tax research
This article looks at recent academic research of interest to tax practitioners.
American Rescue Plan Act passes with many tax components
The $1.9 trillion coronavirus relief bill contains many tax provisions, including changes to the child tax credit and many other credits, making certain unemployment benefits tax-free in 2020, and a $1,400 recovery rebate credit for many individuals.
IRS provides cafeteria plan relief for the pandemic
The IRS issued guidance on how employers can amend their health flexible spending arrangements and dependent care assistance programs to respond to the coronavirus pandemic.
Sec. 457 government plan distributions compared to 401(k) distributions
This article examines the different contribution and distribution rules for the two types of plans.
Guidance permits change in vehicle use valuation during pandemic
In response to the COVID-19 pandemic, the IRS is allowing employers to switch from the vehicle lease valuation method to the cents-per-mile method for determining the value of an employee’s personal use of a vehicle during the pandemic.
Sec. 403(b) retirement plans: A comparison with 401(k) plans
Tax-exempt Sec. 501(c)(3) charities, public schools, and certain other entities can generally adopt either Sec. 403(b) or Sec. 401(k) retirement plans. While the rules applying to these plans are often substantially the same, there are many significant differences.
Taxpayer had unfettered control over SEP-IRA distribution
A distribution from a SEP-IRA to an LLC owned by the taxpayer is includible in the taxpayer’s gross income.
