Added IRS Guidance For Correcting Employment Tax Overpayments Released

December 10, 2009

By Cynthia Marcotte Stamer

The Internal Revenue Service has released an advance copy of new guidance illustrating how employers should apply the processes for correcting employment tax overpayments under Internal Revenue Code sections 6205, 6402, 6413,and 6414 by applying final regulations that the IRS published on August 11, 2008 in Treasury Decision 9405 (TD 9405).  The new guidance set forth in Revenue Ruling 2009-39 is scheduled for publication in the Federal Register on December 28, 2009.

TD 9405 amends the process for making interest-free adjustments of employment taxes under sections 6205 and 6413, and claiming refunds of employment taxes under sections 6402 and 6414.  TD 9405 was initiated in connection with the Service’s development of new “X” forms (e.g., Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund) as part of the Form 94X Project initiated by the Office of Taxpayer Burden Reduction and now led by SBSE Employment Tax Policy.  Revenue Ruling 2009-39 applies the final regulations under TD 9405 to 10 different situations to show how the new processes operate.

If your organization needs assistance with monitoring, assessing, managing or defending these or other labor and employment, compensation or benefit practices, please contact the author of this article, Curran Tomko Tarski LLP Labor & Employment Practice Group Chair Cynthia Marcotte Stamer or another Curran Tomko Tarski LLP attorney of your choice.  Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization and Chair of the American Bar Association RPTE Employee Benefits & Other Compensation Group and a nationally recognized author and speaker, Ms. Stamer is experienced with advising and assisting employers with these and other labor and employment, employee benefit, compensation, risk management and internal controls matters. Ms. Stamer is experienced with assisting employers and others about compliance with federal and state equal employment opportunity, compensation, health and other employee benefit, workplace safety, and other labor and employment laws, as well as advising and defending employers and others against tax, employment discrimination and other labor and employment, and other related audits, investigations and litigation, charges, audits, claims and investigations by the IRS, Department of Labor and other federal and state regulators. She has counseled and represented employers on these and other workforce matters for more than 22 years. Ms. Stamer also speaks and writes extensively on these and other related matters. For additional information about Ms. Stamer and her experience or to access other publications by Ms. Stamer see here or contact Ms. Stamer directly.   For additional information about the experience and services of Ms. Stamer and other members of the Curran Tomko Tarksi LLP team, see here.

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©2009 Cynthia Marcotte Stamer. All rights reserved.