Film Cos. Cannot Pass Tax Liabilities To 3rd Parties: Fed. Circ.

Law360, New York (September 10, 2013, 7:25 PM EDT) -- The Federal Circuit ruled Tuesday that third-party payroll services must apply common law employment relationships when determining federal employment tax wage caps, ending a dozen-year dispute between the IRS and media production payroll company Cencast Services LP.

In a precedential opinion for the Federal Circuit written by Circuit Judge Timothy B. Dyk, the court unanimously ruled in favor of the IRS in a group of consolidated tax refund cases, finding that Cencast, one such payroll service company, could not tax production company workers as if they...
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