Subject Line: IRS Issues Informal Clarification on Claiming COBRA Subsidy on Form 941s
A senior tax analyst for the Internal Revenue Service (“IRS”) recently clarified how to properly claim the payroll tax credit on Form 941 for the ARRA premium subsidy. Through an informal announcement, the IRS agent stated that the ability to claim the credit for the premium subsidy is based on the year in which the payment is received rather than the year the payment is applied. The agent further stated that the date on which the employer is informed of a payment received is not at issue, but only when the payment was actually received.
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