District Court had jurisdiction over FICA refund claims

A federal district court had jurisdiction over various individuals FICA refund claims. The basis of the individuals’ refund claims was Puerto Rico Law 80, which provides that severance pay is not subject to payroll taxes. However, federal law required their employer to withhold payroll taxes from their severance pay. Therefore, if the individuals believed that FICA taxes were wrongfully withheld, their cause of action was a federal one for a tax refund. (F. Duran-Seijo v. Autopistas De Puerto Rico Y Companias S.E., Inc., DC P.R., 2017-2 ustc 50,288.)

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