Tag: Internal Revenue Service

Taxes: New Tax Notice Must Be Sent to Employees

Employers must give employees written notice of their possible right to take an Earned Income Tax Credit on their federal tax returns, as required by a new California law, A.B. 650, that took effect on January 1. The new provision applies to all employers and employees covered by California’s unemployment insurance law.

State Joins IRS in Tax Breaks for Hurricane Relief Donations

The California Franchise Tax Board has announced state tax benefits for businesses and employees who aid Hurricane Katrina relief efforts by donating the cash value of employee leave time. The program–which mirrors a similar federal IRS program announced last week–allows workers to donate unused sick, vacation, or other personal leave time in exchange for the […]

News Bulletin: Government Hunting Down Late Form 5500 Filers

The federal Department of Labor and the Internal Revenue Service have announced that they’re tracking down delinquent filers of Form 5500, which is required to be filed annually for benefit plans. And in December 2002, the agencies plan to begin sending out letters of inquiry to delinquent filers. Penalties for late filing can be steep, […]

News Flash: Details Of Tax-Free Transportation Plans Debated

At a hearing in Washington, D.C., earlier this month, the Internal Revenue Service heard opposing arguments on permitting employers to provide tax-free public transit benefits through cash reimbursement rather than vouchers or passes. As we’ve reported, proposed IRS rules would make it easier for employers to set up transportation spending accounts, which let you pay […]

News Notes: Cash-Balance Retirement Plans Spark Controversy And Legislation

IBM¹s recent announcement that it was converting from a traditional pension plan to a cash-balance plan triggered angry employee protests and age discrimination allegations. Now, government agencies and federal legislators are vowing to take a closer look at the impact cash-balance plans have on older workers. Unlike traditional pension plans in which workers earn most […]