NIGHTMARE ON FIDUCIARY STREET
WHATEVER YOU DO, DON'T FALL ASLEEP
By Eric Paley and Stacy Lawkowski, Nixon Peabody LLP
No one is quite sure how it got its nickname, but Missouri lived up to its reputation as the Show-Me State recently when a federal District Court there showed everyone how to bring a successful lawsuit against ERISA plan fiduciaries.
$36.9 million. That's the amount of damages awarded to the victors in Tussey v. ABB, Inc.,
"Governmental Plan"? Maybe Not!
Is your plan "Governmental"? If so , it might not be subject to the reporting and fiduciary rules of Title I of ERISA. You may not be subject to PBGC. And you may not be facing economic disaster as a result of PPA '06 accelerated funding mandates. But wait! A new IRS proposal could surprise a lot of plans that thought they were governmental.
IRS Top Ten ERISA Audit Issues
Drumroll, please. The IRS has compied a list of the top ten issues arising in its audits of employee benefit plans.
Tough Times for Multiemployer Plans
Fiscal Meltdown '08. Indications are the market decline will lead to funding problems for many plans. At the same time, a sharp economic downturn is likely to cause a decrease employer contributions, potentially threatening the long term viability of many plans. How should trustees respond?
Trustees are Responsible to Collect Delinquent Contributions
A number of DOL investigations have revealed agreements that purport to relieve the financial institutions serving as plan trustees of any responsibility to monitor and collect delinquent contributions, but when the smoke clears, someone has to bear the ultimate responsiblity.
New Tax Credits for Hiring Veterans
The Work Opportunity Tax Credit ("WOTC"), scheduled to expire in 2011, was revised and extended on November 21, 2011. It is now two credits, the Wounded Warrior WOTC and the Returning Heroes WOTC. These credits can be worth as much as $9,600 for each qualified veteran hired after November 21, 2011 and before January 1, 2013.
IRS Issuing New IP PINs to Identity Theft Victims
A six-digit "Identity Protection Personal Identification Number" or IP PIN is being provided to those victims of tax-related identity theft who have had their identities verified by IRS to avoid delays in processing their federal returns.
If you've received IRS Letter 4869CS providing you with an IP PIN, please send a copy of the letter to your tax preparer. He/she needs to enter your IP PIN on your tax return to avoid processing delays.