IRS issues employee FICA consent refund requirements

The IRS has provided guidance on the requirements for the employee consents used by an employer to support a claim for refund of overpaid taxes under the Federal Insurance Contributions Act (FICA) and the Railroad Retirement Tax Act (RRTA). The guidance clarifies the basic requirements for both a request for employee consent and the content of the employee consent and permits employee consent to be requested, furnished and retained in electronic format. The procedure also contains guidance concerning what constitutes “reasonable efforts” if employee consent is not secured in order to permit the employer to claim a refund of the employer share of overpaid FICA or RRTA taxes. The procedure applies to employee consents requested on or after June 5, 2017. It does not require employers to solicit new employee consents and will not affect the validity of any employee consent received pursuant to a request made prior to June 5, 2017, that was provided in accordance with the requirements in Reg. §31.6402(a)-2. Employers may rely on the proposed revenue procedures set forth in IRS Notice 2015-15, IRB 2015-9, 687, for employee consents requested before June 5, 2017. (Rev. Proc. 2017-28, IRB 2017-14 dated Apr. 3, 2017.)

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