State and local compliance with Social Security taxes
Article Abstract:
An audit report of the Social Security coverage of state and local government employees has been issued by the Office of Inspector General of the Social Security Administration. The paper reveals that several public employers may not be correctly declaring the Social Security coverage status of their workforces, resulting in potential maximum tax liability amounting to $17 billion. Of the 23 million public employees in the US, about seven million jobs are not being reported as taxable under the Social Security system. Noncompliance is blamed on complexity in the law, intricate revisions in the coverage provision and the imploding role for state Social Security administrators. Recommendations for correcting this imperfection are provided by the paper.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
No ESOP dividend deduction for stock owned by employees
Article Abstract:
TAM 9612001 holds that a corporation did not pay dividends which are deductible under Sec. 404(k) when it made a stock redemption from its leveraged employee stock ownership plan to cash out participants. The interests of the employees were terminated because they owned the stock and the redemptions were not equivalent to dividends. Moreover, each redemption was considered by the IRS as a payment in exchange for stock. Although the participants did not own the stock held in their accounts under the attribution rules, the IRS deemed the participants to be the direct owners of the stock because they were the beneficial owners. A beneficial owner is considered the owner for tax purposes and is determined based on the incidents of ownership.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Stock and compensation. Additional evidence on integration in the Canadian stock market
- Abstracts: Confidence interval for the total advertising impact and its mean duration under Koyck models. part 2 The research tightrope: How do you know if an ad campaign is selling your product or service?