Payroll on Bloomberg Tax is built to get you to the right answer faster and more efficiently. Get all the payroll intelligence you need with Bloomberg Tax expert analysis, perspectives and...
By Keith Hill
Guidance for employers on rules for employees requesting a credit or refund of overpaid taxes under the Federal Insurance Contributions Act and the Railroad Retirement Tax Act was issued March 20 by the Internal Revenue Service.
The guidance ( Revenue Procedure 2017-28) clarified basic requirements under tax code Section 6402 for an employee consent request as well as the requirement that an employee’s consent must include the reason for the refund claim. The consent must be signed by the employee under penalties of perjury. The employer must inform the employee of the purpose of the employee consent.
The revenue procedure adds a requirement that all requests for consent must indicate that an employee may not authorize the employer to claim a refund on the employee’s behalf for any overpaid additional Medicare taxes.
In 2015, the Internal Revenue Service asked for comments on a proposed revenue procedure that sought to clarify questions about what information was required in an employee consent and whether consent may be requested, furnished and retained electronically ( Notice 2015-15).
Employers must give an employee 45 days to respond to a consent request, but 21 days to respond to a second consent request. Employers may not receive refunds of the employer share of overpaid FICA tax without making reasonable efforts to protect employees’ interests, the IRS said.To contact the reporter on this story: Keith Hill in Washington at email@example.com To contact the editor responsible for this story: Michael Trimarchi at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)