In Mennemeyer v. Commissioner,1 the United States Tax Court reminds us that a settlement agreement that is not carefully drafted can have significant tax consequences....more
In the recent United States Tax Court case O’Connor v. Commissioner of Internal Revenue, Judge Arbeit sanctioned the petitioner for advancing frivolous arguments contesting the authority of the IRS to assess tax....more
5/20/2025
/ Constitutional Challenges ,
Employees ,
Employer Liability Issues ,
Employer Responsibilities ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Penalties ,
Reporting Requirements ,
Sixteenth Amendment ,
Tax Court ,
Tax Liability ,
Wage and Hour
The Internal Revenue Service has released new guidance, Rev. Rul. 2025-3, clarifying the application of Section 530 of the Revenue Act of 1978, Section 3509 of the Internal Revenue Code (IRC), and Section 7436 of the IRC in...more
The IRS’s recently released Revenue Ruling 2025-4 provides significant guidance on the employment tax treatment of contributions to and benefits paid under state paid family and medical leave (PFML) programs. This has been an...more
1/23/2025
/ Compliance ,
Corporate Taxes ,
Employee Benefits ,
Employment Tax ,
Family Medical Leave ,
Income Taxes ,
IRS ,
Paid Leave ,
Reporting Requirements ,
State Labor Laws ,
Tax Liability
Dear Littler,
We’d like to provide gifts to our staff for the holidays but are unsure which types of gifts would trigger tax obligations for our employees. We’d also like to offer donation matching for our employees’...more
The IRS recently updated its guidance for completing Form 1099-K, used primarily by “gig” companies providing compensation using payment apps or online marketplaces and for individuals selling goods on online marketplaces...more
On July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the...more
In an opinion issued on June 20, 2023, the United States Court of Federal Claims reminded taxpayers that they must obtain a certificate of coverage in order to claim an exemption from Social Security and Medicare taxes (FICA)...more
On December 14, 2022, the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) signed and published a Memorandum of Understanding for Employment Tax Referrals (the “MOU”). The MOU establishes a system for...more
12/28/2022
/ Corporate Counsel ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Gig Economy ,
Independent Contractors ,
IRS ,
Memorandum of Understanding ,
Misclassification ,
Tax Liability ,
Tax Penalties ,
Wage and Hour
Effective October 1, 2021, the New Jersey Division of Taxation (the “NJDT”) ended the temporary relief period with regard to employers’ obligation to withhold income taxes for teleworking employees who work in New Jersey.1 ...more
In Stassi v. Commissioner, the United States Tax Court found that a settlement was not excludable from income as a personal physical injury because the taxpayer failed to demonstrate that her shingles was caused by her...more
Dear Littler: Our company is based in New York City, but since March 20 our employees have been teleworking because of the “stay at home” orders necessary to combat the spread of COVID-19. Most of our employees are working...more
Dear Littler: My company recently hired a new employee who is giving our human resources department some pushback on submitting his W-4. The HR manager says the employee mentioned something about not being subject to income...more
Dear Littler: I’m in charge of our company’s party-planning committee, but I’m ready to give up my title as Head Elf. We’re working on choosing gifts for employees, and we’d like to raffle off nice prizes for employees and...more
In a short published opinion, the U.S. Court of Appeals for the Ninth Circuit sided with the Third, Seventh and Tenth Circuits, and split with the D.C. Circuit, over whether a federal district court may award a “tax...more