IRS CCA: Guidance on Whether Employer Is Eligible to Receive Refund for FICA Tax Overpayment Paid on Behalf of Employee on Foreign Assignment (IRC §3101)

Guidance on whether an employer is eligible to receive a refund for an overpayment of tax imposed by the Federal Insurance Contributions Act (FICA) paid on behalf of an employee on a foreign assignment in a year after the calendar year in which wages were paid without the employer first repaying or reimbursing the employee’s portion of social security tax or securing the employee’s consent to the allowance of the claim for the refund and include the consent, the Chief Counsel’s Office advised. In order to receive a refund for an overpayment of FICA tax, an employer must repay or ...