Tuesday, October 1, 2013
The U.S. Supreme Court granted certiorari today in United States v. Quality Stores, Inc., No. 12-1408, to resolve a split in the Sixth Circuit (United States v. Quality Stores, Inc., 693 F.2d 605 (Sept. 7, 2012)) and Federal Circuit (CSX Corp. v. United States, 518 F.3d 1328 (Fed. Cir. 2008)) over whether severance payments to employees are “wages” subject to Social Security and Medicare taxes. The government’s opening brief is due November 15, with oral argument likely in January 2014.
Prior TaxProf Blog coverage:
- 6th Circuit: Severance Pay Is Not Subject to Employment Taxes (Sept. 10, 2012)
- Wall Street Journal: When Severance Pay Is Subject to Payroll Tax (Oct. 28, 2012)