Analysis

High Court Payroll Row Raises Other Employee Tax Concerns

Law360 (May 16, 2018, 7:37 PM EDT) -- The latest tax dispute to hit the U.S. Supreme Court dockets may be narrowly limited to the rail industry, but the possibility of an IRS regulation being struck down could open a can of worms on what kinds of employee compensation can be taxed.

The high court agreed Monday to take up a petition from BNSF Railway Co. over whether payroll taxes should be deducted from compensation owed to a former employee for lost wages in connection with a workplace injury.

The row reveals a disconnect between the definitions of taxable compensation in two federal statutes that are supposed to work...

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