The Pension Benefit Guaranty Corporation and Single-Employer Plan Terminations

[Excerpt] Recent high-profile terminations of defined benefit pension plans have focused attention on the process for terminating plans and the Pension Benefit Guaranty Corporation (PBGC). The Employee Retirement Income Security Act (ERISA) regulates plan terminations. It provides for three types of single-employer plan terminations — standard, distress, and involuntary — and imposes different responsibilities on the PBGC for each type. This report discusses ERISA’s procedures for terminating single-employer plans and the PBGC’s role in such terminations

Legal Issues in Terminations of Single-Employer Pension Plans: Beck v. PACE International Union

[Excerpt] On January 19, 2007, the U.S. Supreme Court granted certiorari in Beck v. PACE International Union. The case concerns the decision by an employer in bankruptcy proceedings to terminate its pension plans. The employer, which was both plan sponsor and administrator, had the option of terminating the plans by buying annuities for plan participants and beneficiaries or by merging the plans with a multiemployer plan. It chose the annuity option. At issue in Beck is whether the employer breached the fiduciary duty owed under the Employee Retirement Income Security Act (ERISA) to plan participants and beneficiaries by failing to adequately consider the merger proposal. This report discusses the Beck case and will be updated as events warrant

Tax-Exempt Organizations: Political Activity Restrictions and Disclosure Requirements

This report examines the limitations that the Internal Revenue Code places on political activity -- including lobbying and campaign intervention -- by tax-exempt organizations

Hurricane Katrina: The Response by the Internal Revenue Service

After Hurricane Katrina, the Internal Revenue Service (IRS) announced several tax relief measures to aid affected individuals and businesses. They cover a range of subjects, from postponing deadlines for paying taxes and filing returns for individuals, employee benefit plans and tax-exempt bond issuers, to waiving penalties for certain fuel excise taxes. This report summarizes these measures and discusses the statutory authority for the IRS’s actions

Application Process for Seeking Section 501(c)(3) Tax Exempt Status

Charities and other entities seeking tax attempt status as organizations must apply to the Internal Revenue Service. This report provides an overview of the application process

Katrina Emergency Tax Relief Act of 2005

This report discusses the Katrina Emergency Tax Relief Act which was signed into law by President Bush on September 23, 2005. It primarily contains temporary tax relief intended to directly and indirectly assist individuals in recovering from Hurricane Katrina. The provisions cover a variety of areas, including work credits, charitable giving, and casualty losses

H.R. 3768: the Katrina Emergency Tax Relief Act of 2005

This report compares the provisions in H.R. 3768, the Katrina Emergency Tax Relief Act of 2005, as passed by the House with those in the amended version of the bill that was passed by the Senate

Coal Excise Tax Refunds: United States v. Clintwood Elkhorn Mining Co.

In 1998, a U.S. district court held that the imposition of the coal excise tax, or black lung excise tax, on coal destined for export was unconstitutional. The process of refunding the tax has been controversial. This is because some coal producers and exporters have attempted to bypass the limitations in the Internal Revenue Code's refund scheme for bringing suit under the Export Clause in the Court of Federal Claims, seeking damages from the United States in the amount of coal excise taxes paid. The Federal Circuit Court of Appeals held the court had jurisdiction under the Tucker Act to hear the suits and allowed them as an alternative to the Code's refund process. However, in a 2008 decision, United States v. Clintwood Elkhorn Mining Co., the Supreme Court unanimously held that taxpayers must comply with the Code's administrative refund process before bringing suit. Meanwhile, H.R. 1762 and S. 373 would provide an alternative method for taxpayers to receive coal excise tax refunds