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A recent article published by Tax Analysts, discusses the case United States v. Quality Stores, where the Supreme Court will consider whether to grant certiorari on September 30. The case questions the Federal Insurance contributions Act and how it is applied. The article, titled “News Analysis: What’s at Stake in Quality Stores?” states that the Supreme Court should grant certiorari in order to avoid further inconsistency in the application of these rules.

The case at issue debates whether payments that where “made by an employer to employees whose employment has been involuntarily terminated because of the closing of the business constitute wages for purposes of FICA.” The government, who lost in the Sixth Circuit, is seeking cert.

“Hundreds of these cases had been held in abeyance,” Thomas M. Cryan told the publication, stating that the result of the case would affect taxpayers. “I think the whole case comes down to statutory construction,” he said.

“If the Supreme Court ultimately decides in the case in favor of the taxpayer, the implication could be that the IRS can issue specific guidance only by regulation and not in a revenue ruling,” said Cryan. 

“News Analysis: What’s at Stake in Quality Stores” (Tax Analysts, September 3, 2013)