Monthly Archives: November 2013

IRS Chips Away at the FSA "Use-or-Lose" Rule

Health care flexible spending accounts (“FSAs”) established pursuant to a cafeteria plan under Section 125 of the Internal Revenue Code of 1986, as amended, have long permitted employees to make pre-tax salary contributions to an account in order to receive reimbursements to pay for certain qualifying medical benefits that are not reimbursed through insurance or another arrangement. In order to participate in an FSA, an employee must elect in advance of the plan year the amount of pre-tax pay that he or she wants to use for that year, and amounts that remain unused at the end of a plan year must be forfeited. This so-called “use-or-lose” rule, although based on other related tax law principles, has been criticized by many as forcing employees to make guesses about their future level of use of their FSAs, and the rules arguably push participants into incurring expenses at year end simply to avoid forfeiting funds. The impact of the “use-or-lose” rule was somewhat lessened in 2005 by Internal Revenue Service (“IRS”) Notice 2005-42, which allows a plan to include provisions that provide for reimbursement of certain qualifying medical expenses incurred during a 2½-month grace period following the end of the plan year. Any amount not used by the end of the grace period would still be subject to forfeiture.

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Roadkill On The Dinner Menu: The Bye-Bye Bambi Burger

The ABA Journal (November 2013) reported that Montana has legalized the consumption of roadkill.  According to Leslie A. Gordon, the article’s author, starting in time for Thanksgiving, anyone who comes across a dead animal in Montana now can legally toss the roadkill on the grill or stick it on the freezer for later provided a free permit from state peace officer is obtained within 24 hours of finding the carcass.

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Week of October 28, 2013 on ILNToday – A Roundup!

It’s hard to believe it’s already November – this year has really flown by! I hope you’re all thinking about reviewing your marketing/business development plans today after yesterday’s post!

Here are this week’s top posts from ILNToday:

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ILN Today Post

Disclosure from foreign parties

Two recent cases have involved foreign parties trying to resist orders for the disclosure of documents on the ground that it would be contrary to their local law.

In National Grid Electricity v ABB Limited and 22 others [2013] EWHC 822 (Ch) French companies were required to provide specific disclosure in connection with a claim that they operated an illegal cartel. They claimed that French law (no.68-678, art 1 bis) prohibited the disclosure of any documents or information of an economic, commercial, industrial, financial or technical nature for the purposes of establishing evidence in view of foreign judicial proceedings. More…

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ILN Today Post

Net contribution clauses – an important decision

In a recent court case the judge made an important finding on the wording of a “net contribution” clause, and awarded significant damages for distress and inconvenience arising out of the repair of defective work.

The project was a fairly standard one. Mr and Mrs West purchased a five floor house close to the Thames and engaged IFA as their architects to design changes to the layout and administer the building contract. The contractor, Armour, was introduced by IFA, the works were carried out and the Wests moved in. Shortly afterwards they found extensive damp in the lower ground floor. The waterproofing had to be completely redone, together with the plumbing, electrical works and kitchen fit out. The Wests had to move out of the house for 20 months while the remedial works were carried out. The contractor became insolvent and the Wests sued the architect for negligence. More…

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Family courts caught up in divorce ‘scam’

Family courts in the UK appear to have been caught up in a scam involving couples from Italy who have allegedly faked UK residency in order to be able to get divorced in this country, reports the Telegraph.

In Italy, couples are required to be separated for three years before they can legally divorce. However, under European legislation, couples can divorce in other EU member states if they have obtained residency there, often much quicker than they could do at home, and have this divorce recognised in Italy.

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Changes in IRS Limits for 2014

NOT ALL INDEXED LIMITS GO UP FOR 2014
Federal statisticians are back to work, and have confirmed private sector estimates of the 2014 CPI adjustments that affect tax-favored employee benefits. Many of the limits will not change due to “low inflation.” Key provisions for retirement plan sponsors are in the following grid.

The full list is in IRS Rev. Proc.-2013-25. If you need historical data, IRS also maintains a helpful table showing yearly adjustments to most retirement plan limits since 1989. Finally, adjustments to non-retirement items, ranging from personal exemptions to the tax on arrow shafts, appear in IRS Rev. Proc. 2013-35.

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