The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Rules Discounts Offered to Employees Are Taxable Income
In the recently released Chief Counsel Advice (CCA) 200923029, the Internal Revenue Service ruled that discounts provided to an employer’s employees who purchase or lease property from a company that formerly owned the employer are taxable as fringe benefits based on...
IRS Provides Guidance on Eligibility of Members of Military Reserve Units and National Guard for Premium Subsidy
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
AK Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to flooding and ice jams in Alaska on April 28, 2009, President Barack Obama declared the following regional educational attendance areas a federal disaster area: Alaska Gateway, Kuspuk, Yukon Flats and Yukon-Koyukuk. Therefore, the Internal Revenue Service (IRS)...
IRS Provides Guidance on Elected Officials Eligibility for Premium Subsidy
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Provides COBRA Guidance on Seasonal Employees
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Provides Guidance on Group Health Plan Termination
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Provides Guidance on Voluntary Continuation Coverage
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
Tip of the Week: IRS Proposes New Methods for Substantiating Cell Phone Use in Notice 2009-46
In Notice 2009-46, Substantiating Business Use of Employer Provided Cell Phones, the Internal Revenue Service requested comments from the public on several proposals for simplifying employer documentation of an employee’s business use of an employer-provided cell...
IRS Provides Guidance on Employer Determination of Involuntary Termination
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
KY Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms, tornadoes, flooding and mudslides in Kentucky on May 3, 2009, President Barack Obama declared the following counties a federal disaster area: Breathitt, Floyd, Owsley and Pike. Therefore, the Internal Revenue Service (IRS) announced recently that...
FL Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms, flooding, tornadoes and straight-line winds in Florida on May 17, 2009, President Barack Obama declared the following county a federal disaster area: Volusia. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive...
IRS Updates Form 941 Instructions for COBRA Premium Assistance Reporting
The Internal Revenue Service (IRS) has updated its instructions for Form 941, Employer’s QUARTERLY Federal Tax Return. Using the new guidance, employers are now instructed to report on line 12a “65% of the COBRA premiums for assistance eligible individuals” (AEIs)....
IRS Issues Guidance on Work Opportunity Tax Credit in Notice 2009-28
The Internal Revenue Service (IRS) recently issued Notice 2009-28 offering guidance on the Work Opportunity Tax Credit (WOTC) under §51 of the Internal Revenue Code of 1986 (IRC). Under the American Recovery and Reinvestment Act of 2009 or ARRA, unemployed veterans...
Proposed Regulations Allow Employers to Suspend 401(k) Contributions
On May 18, 2009, the Internal Revenue Service (IRS) published at 74 FR 23134, REG-115699-09, Suspension or Reduction of Safe Harbor Nonelective Contributions. The proposed regulations take effect May 18, 2009 and may be relied upon by taxpayers until final regulations...
WV Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms, flooding, mudslides, and landslides in West Virginia on May 3, 2009, President Barack Obama declared the following counties a federal disaster area: McDowell, Mingo, Raleigh and Wyoming. Therefore, the Internal Revenue Service (IRS) announced...
AL Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms, flooding, and tornadoes in Alabama on March 25, 2009, President Barack Obama declared the following counties a federal disaster area: Covington, Geneva and Houston. Therefore, the Internal Revenue Service (IRS) announced recently that it will...
IRS Releases Withholding Adjustment Procedures for Pension Plans
In IR-2009-050, the Internal Revenue Service (IRS) has announced the release of Notice 1036-P, Additional Withholding for Pensions for 2009, in order to help some pensioners avoid a smaller refund or a balance due when filing their 2009 Form 1040. Although using the...
FL Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms, flooding, tornadoes, and straight-line winds in Florida on March 26, 2009, President Barack Obama declared the following counties a federal disaster area: Calhoun, Dixie, Gilchrist, Hamilton, Holmes, Jackson, Lafayette, Leon, Levy, Liberty,...
GA Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms and flooding in Georgia on March 26, 2009, President Barack Obama declared the following counties a federal disaster area: Ben Hill, Berrien, Brantley, Brooks, Camden, Coffee, Colquitt, Decatur, Dougherty, Echols, Lanier, Lowndes, Miller,...
AR Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms and tornadoes in Arkansas on April 9, 2009, President Barack Obama declared the following counties a federal disaster area: Ashley, Miller, Polk and Sevier. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive...
Question of the Week: What Are the 2010 Health Savings Account Inflation Adjustments?
This week’s question comes from Joel, an HR director. We just implemented a Health Savings Account plan at our company. We know the amounts employees can contribute for 2009. What are the 2010 Health Savings Account inflation adjustments? Answer: the Internal Revenue...
ND Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms and flooding in North Dakota on March 24, 2009, President Barack Obama declared the following counties a federal disaster area: Adams, Barnes, Billings, Burleigh, Cass, Dickey, Emmons, Foster, Grand Forks, Grant, Griggs, Hettinger, Kidder,...
Taxpayers Receive Extension of Time to File Returns and Pay Taxes
Due to severe storms and flooding in Minnesota on March 16, 2009, President Barack Obama declared the following counties a federal disaster area: Clay, Norman, Traverse, Wilkin, Beltrami, Marshall, and Polk. Therefore, the Internal Revenue Service (IRS) announced...
Additional Issues under Notice 2009-27
The Internal Revenue Service (IRS) recently released an advance copy of Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for...
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