US Urges High Court To Nix Quality Stores' $1M Refund

Law360, New York (January 3, 2014, 4:35 PM EST) -- The federal government reiterated to the U.S. Supreme Court on Tuesday that severance payments made by bankrupt Quality Stores Inc. to laid-off workers are taxable as wages under the Federal Insurance Contributions Act, saying Quality Stores is ignoring the plain text of the law.

In a reply brief, the government slammed Quality Store’s argument that the severance payments are supplemental unemployment compensation benefits — which do not qualify as taxable wages — saying the company’s logic does not mesh with FICA’s definition of taxable wages as...
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