LB&I EMPLOYMENT TAX PROGRAM October 8, 2010
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Transcript of LB&I EMPLOYMENT TAX PROGRAM October 8, 2010
LB&I LB&I EMPLOYMENT TAX PROGRAMEMPLOYMENT TAX PROGRAM
October 8, 2010October 8, 2010
EMPLOYMENT TAX PROGRAM
• Heather Maloy – LB&I Commissioner• Kathy Robbins - Director Field Specialist• Howard Martin - Acting DFO (Deputy Director) • Robin Arnold - National Program Manager• Kathy VanDeventer - ET Specialty Analyst• Walter Hall - ET Manager
Employment Tax Program
• Total 9 ET Groups Nationwide
• Group 1164, total 8 ET Specialists working in So. Calif. Area that covers
– San Diego– Santa Ana– Long Beach– El Segundo– Glendale
ROLE OF LB&I ET SPECIALIST
•Informal Request•Consulting•Compliance•LB&I Cases – CIC & IC
ROLE OF LB&I ET SPECIALIST
Informal Request
•Quick questions answered •Quick guidance provided
ROLE OF LB&I ET SPECIALIST
Consulting• Maximum time = 8 hours• Background Research – SEC filings (Annual Report 10K,
Proxy Statement 14A, F-4s, and / or Company Website) • ET Specialist suggested IDR issued by TC / responses
reviewed by ET Specialist• Provide guidance • IDRS (INOLE, BMFOLU, TRPRT, BRTVU, etc.)• Reject / Accept?
ROLE OF LB&I ET SPECIALIST
Compliance
•Executive Compensation•Number of employees affected•Dollar amount
ROLE OF LB&I ET SPECIALIST
LB&I Cases – CIC & IC
• Executive Compensation • Salary & Wages
Schedule M-3, Form 1120
LB&I Cases – CIC & IC
Executive Compensation • Key Executive Benefits• Stock Based Compensation• Non Qualified Deferred Compensation• Golden Parachute
Executive CompensationKey Executive Benefits
• Search executive benefits from 10 K, 14A, employment contract, Compensation Committee Minutes, IDR response…
Executive CompensationStock Based Compensation
• Non Qualified Stock Options• Incentive Stock Options (ISO) /
Backdated Stock Options• Stock Appreciation Right (SARs)• Restricted Stock §83
Executive CompensationNon Qualified Deferred Compensation§409A • Executives Deferred Compensation
under NQ Plan• Restrictive Use?• Section 83• Funded / Unfunded?• Rabbi Trust
Executive CompensationGolden Parachute §280G• Change in control• Large payments that are in the nature of
compensation• made to or for the benefit of a “disqualified
individual” • aggregate present value is equal to or greater
than three times the "base amount"
LB&I Cases – CIC & ICSalary & Wages• Expatriates • Relocation Benefits• Per Diem Payments and Other • Prizes and Awards• Employment Litigation & Settlement• Severance• Bonus• W-2 and Form 1099 Matching • Worker Reclassification, Section 530• Other Employee Benefits
Referrals•Specialist Referral System (SRS)•Submit Referral with LIN link•ET Manager Reviews
– Consulting, Reject, Accept– formal Referral
Referral AcceptanceET Specialist Will:
• Examination of selected Payroll return (940, 941, 945)
• Open and own case in IMS • Martinsburg files W-2 & 1099 requested• Review LIN link• Analyze Schedule M-3 for ET issues• SEC Filings (10K, 14A, etc.)• IDRS – BMFOLU, INOLE, TRPRT, RTVUE, etc.• Review IDR response (Consulting Referral)• Technical Guidance
Referral Reject•Limited Resources•Limited time•Lack issue potential•TC can resubmit at a later time
Mandatory Review – Officer Returns
• IRM 4.46.3.6.7 – Debbie Nolan Memo• Review 1040 Return or TRPRT • CEO and top highest paid officers• DON’T request from TP (1120, 1120s, etc.)• DON’T inform the TP (1120, 1120s, etc.) that
you are requesting officer returns.• Letter 3996 (officer letter)• 1040 Examinations – LB&I TC or Refer to SBSE
TEAM COORDINATOR’S TO DO LIST
Prior to the ET Specialist’s arrival the following should be present:
1. LIN link2. M-3 work papers3. Response to ET suggested IDR (Issued by TC during
consulting phase) 4. CAS - Accounts Payable files (cash disbursements) / Vendor
Analysis5. Key Officer tax returns (CEO & top highly paid officers)6. Access to BOD Minutes / Compensation Committee Minutes
(immediately following the ET Specialist arrival)
The EndThe End
Question?Question?