File Protective Refund Claims for Severance Payments made by April 15, 2010
On February 23, 2010, the U.S. District Court for the Western District of Michigan held in the Quality Stores case that the taxpayer was entitled to a $1 million refund in overpaid FICA taxes on severance payments. This decision should cause employers to reconsider whether protective FICA refund claims related to severance payments should be filed. The deadline to file FICA refund claims for 2006 severance payments is April 15, 2010.