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Home > Personal Income Tax Planning > Reading, Writing and FICA-Taxation of FICA Payments on Tenure Buyout - Ed Zollars
Podcast: Personal Income Tax Planning
Episode:

Reading, Writing and FICA-Taxation of FICA Payments on Tenure Buyout - Ed Zollars
Category: Business
Duration: 00:00:00
Publish Date: 2006-06-16 23:56:32
Description:

This PodCast concerns FICA taxation of payments made in exchange for tenure rights as part of an early retirement package offered to teachers.  Another Circuit chimes in on the issue. In a combined appeal of two contradictory opinions of lower courts under their jurisdiction, the Sixth Circuit upheld the lower court's finding in favor of FICA taxation in Appolini and reversed the opposite lower court holding in Klender, both cases that involved early retirement payments to teachers subject to Michigan's tenure law.

The Sixth Circuit, in a 2-1 split decision, specifically called into question the Eigth Circuit's holding in North Dakota State University where payments for professor's tenure rights were held not to be subject to FICA.  We look at why the majority believes the North Dakota holding was in error, as well the reasoning behind the dissenting opinion.  As well, we consider the IRS changes to Revenue Rulings in this area, as well as how the courts dealt with the prior rulings that were applicable to these cases.

The materials can be downloaded at http://edzollars.com/2006-06-17_FICA.pdf.



This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com

Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

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