Chief Counsel rules that fine paid to FINRA are not deductible

sethastianTax Alert

IRS Chief Counsel has determined that the Financial Industry Regulatory Authority (FINRA) is an entity serving as an agency or instrumentality of the government of the United States. As such, fines paid to FINRA are not tax deductible. Under the Securities Exchange Act, FINRA is required to conduct enforcement and disciplinary proceedings relating to compliance with federal securities laws, regulations, and FINRA rules promulgated pursuant to that statutory and regulatory authority.

IRS Issues Guidance on Wrongful Incarceration Inclusion Claims

sethastianTax Alert

The IRS has provided guidance on how wrongfully-incarcerated individuals are to make claims for a retroactive exclusion from income for any civil damages, restitution or other monetary award received in connection with their wrongful incarceration. The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed into law on December 18, 2015, permits such an exclusion.

OH – Municipal withholding changes made

sethastianTax Alert

Recently enacted legislation makes changes to Ohio municipal withholding tax deadlines. The deadline for an employer to remit employee municipal withholding taxes on a quarterly basis, is extended from the 15th day after the end of each calendar quarter to the last day of the month following the end of each calendar quarter.

Employer had “reasonable basis” for classifying workers as independent contractors

sethastianTax Alert

A federal district court has concluded that an employer who classified its workers as independent contractors was entitled to relief under Section 530 of the Revenue Act of 1978 (Nelly Home Care, DC-Pa., May 10, 2016). As a result, the employer did not owe employment taxes for the period at issue. (Of course, in that case, the IRS will now likely go after the workers for self-employment taxes if they have not already treated themselves as independent workers and the limitations period for assessment has not expired.)