Supreme Court rules stock options exempt from tax under RRTA as compensation

Nonqualified stock options paid to railroad employees for services rendered are not taxable compensation for purposes of the payroll contributions due under the Railroad Retirement Tax Act of 1937, according to the United States Supreme Court. Writing for a divided 5-4 Court, Justice Neil Gorsuch explained that stock options are not a medium of exchange […]

Fifth Circuit issues mandate officially vacating fiduciary rules

The Fifth Circuit Court of Appeals has issued a mandate officially vacating in toto the fiduciary conflict of interest rules, including the Best Interest Contract Exemption (BICE), the Principal Transaction Exemption, and revised PTE 84-24. Given the refusal of the Department of Labor to defend the fiduciary rules in the Fifth Circuit or in the […]

IRS proposed regs modify electronic filing requirement for information returns

The IRS has proposed regulations that would change the rules for determining whether information returns, such as the Form 1099 series and Form 5498, must be filed electronically. Under the proposed regulations, all information returns, regardless of type, must be taken into account to determine whether a person meets the 250-return threshold for the electronic […]

PBGC reports multiemployer program continues to face insolvency by 2025

The Pension Benefit Guaranty Corporation (PBGC) has issued its Fiscal Year (FY) 2017 Projections Report on the financial prospects of its pension insurance programs. Consistent with findings in last year’s Report, the multiemployer program is likely to become insolvent by the end of fiscal year (FY) 2025 without changes in the law or additional resources. […]

IRS properly assessed tax and penalties on employer that improperly calculated annual benefit limit

The IRS properly assessed tax deficiencies and penalties on an employer that improperly calculated the annual benefit limitation, resulting in nondeductible contributions, according to the U.S. Court of Appeals in St. Louis (CA-8). The court affirmed the Tax Court’s ruling that the method used by the IRS for determining the annual benefit limit accorded with […]

Senate Democrats challenge DOL to defend fiduciary conflict of interest rules

Senate Democrats with long established backgrounds in consumer advocacy have sent a highly charged letter to Secretary of Labor, Alexander Acosta, challenging the Department of Labor to appeal the Fifth Circuit decision invalidating the fiduciary conflict of interest rules to the United States Supreme Court. In addition, the Senators request information on the protections the […]

Fifth Circuit rejects reconsideration and review of rebuff of fiduciary rule

The states of California, New York, and Oregon have been rebuffed for the second time in their continuing effort to secure a full Fifth Circuit review of a panel decision in March overturning the fiduciary conflict of interest rules. The states had requested reconsideration by the panel of the rejection of a prior motion to […]

PBGC seeks comments on information contained in quarterly survey of insurance company rates for pricing annuity contracts

The Pension Benefit Guaranty Corporation (PBGC) is seeking public comment on an extension, with modifications, of a currently-approved collection of information contained in a quarterly survey of insurance company rates for pricing annuity contracts. The rates are used by the PBGC to formulate actuarial valuation methods and assumptions that must be used to determine the […]

EBSA seeks comments on information collection requests contained in various documents

The Employee Benefits Security Administration (EBSA) is requesting public comments on the proposed extension of the information collection requests contained in the following documents: Prohibited Transaction Class Exemption (PTE) 1990-1; PTEs 94-71 and 2003-39; PTE 2002-12; The Fiduciary Correction Program and PTE 2002-51; PTE 2004-07; Regulations on the qualified termination of abandoned plans, and PTEs […]

PBGC issues disaster relief for North Carolina

The Pension Benefit Guaranty Corporation (PBGC) has announced relief from certain deadlines and penalties in connection with the Form 5500 series for “designated persons” adversely affected by a tornado and severe storms that began on April 15, 2018 in North Carolina. The relief generally extends from April 15, 2018 through August 15, 2018. Source: PBGC […]