The Supreme Court on October 1 granted the government's petition for certiorari in United States v. Quality Stores, No. 12-1408, in which the government framed the question presented as whether severance payments made to employees whose employment was involuntarily terminated are taxable under FICA. The government is appealing the Sixth Circuit holding in favor of the taxpayer that supplemental unemployment compensation benefits are not taxable as wages under FICA. The Federal Circuit held in favor of the government on the same issue in CSX Corp v. United States, 518 F.3d 1328 (Fed. Cir. 2008).
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