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Court holds severance payments not subject to FICA taxes; refund claims should be filed soon - Lexology

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In its recent decision, the United States Court of Appeals for the Sixth Circuit in U.S. v. Quality Stores, Inc., No. 10-1563 (6th Cir., 9/7/2012) held that certain severance payments made to former employees were not subject to tax under the Federal Insurance Contributions Act.

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