FAQs about RIFs and Possible FICA Refunds
By J. MARK POERIO, NANCY IREDALE, & STEVE TURANCHIK
A few weeks ago, the 6th Circuit ordered the IRS to refund over one million dollars of Social Security (FICA) taxes relating to severance benefits that Quality Stores paid in connection with involuntary terminations of employment arising from its reductions in force (RIFs). The questions-and-answers with this alert are intended for employers that have paid FICA taxes under similar circumstances.