Individual Mandate Upheld as Tax

The majority found that the individual mandate could not be sustained under the Commerce Clause but does come within the Congress’ power to tax. Because the mandate was held Constitutional, the court did not have to reach the issue of severability. Document Excerpt Our precedent demonstrates that Congress had thepower to impose the exaction in […]

Guidance on when Dividends considered Qualified Performance Based Compensation

Revenue Ruling 2012-19 provides guidanace as to whether dividends and dividend equalivants paid with respect to restricted stock will be considered qualified performance based compensation for purposes of Section 162(m). Document Excerpt HOLDINGS Situation 1. With respect to Corporation X, dividends and dividend equivalents paid under X’s plan are qualified-performance based compensation and therefore are […]

Proposed Amendment to Prohibited Payment Guidance

The proposed regulations would add an exception to the anti-cutback rule to permit a plan sponsor that is a debtor in bankruptcy to amend its single employer plan to eliminate a single sum option if certain conditions are met. Document Excerpt This document contains proposed regulations that would provide guidance under the anti-cutback rules of […]

Proposed Regulations On Reporting on Form 8955-SSA

The IRS has issued proposed regulations providing guidance relating to automatic extensions of time for filing certain employee benefit forms by adding Form 8955 to the list of forms that are covered by the automatic extension. Document Excerpt This document contains proposed regulations that would provide guidance relating to automatic extensions of time for filing […]

Guidance on Affordability Test

The IRS has issued final regulations on the premium tax credit under the Affordable Care Act. Document Excerpt This document contains final regulations relating to the health insurance premium tax credit enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended by the Medicare […]

Lump Sum Interest Rates

The PBGC releases the interest rates for lump sum payments in July. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of July 2012 is 1.00%. The deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for June 2012 was 1.25% for […]

ACT Report on Audit Recommendations

The Advisory Committee on Tax Exempt and Governmental Entities (ACT) Report of Recommendations on examinations of large employer plans. Document Excerpt The underlying theory was simple. If a plan sponsor can show through its responses to an Internal Revenue Service (IRS or Service) questionnaire that it has checks and balances integrated into the administration of […]

Revised Power of Attorney

The IRS has earlier this year made changes to Form 2848 and will cease to process earlier versions of the form. Document Excerpt A revised version of Form 2848, Power of Attorney and Declaration of Representative, was released in March 2012. Beginning March 1, the IRS’s three Centralized Authorization File processing sites: stopped processing all […]

Update on Interest Rates

Notice 2012-43 updates the corporate bond interest rate and weighted average for funding purposes. Document Excerpt This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It […]

H.R. 436, the “Health Care Cost Reduction Act of 2012”

The bill, if enacted, would repeal the Affordable Care Act’s excise tax on medical devices and allow up to $500 in unused balances in  health flexible spending accounts to be distributed back to the account holder and allow certain contributions to be used to cover the cost of over-the-counter medications. Document Excerpt As posted on […]

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