IRS issues final regs on Additional Medicare Tax for high wage earners-Dec. 31 last chance to implement procedures

Tax Controversy & Dispute Resolution ()
The IRS issued final regulations providing guidance to employers and individuals regarding the implementation of the additional Medicare tax. The final regulations come nearly one year after the IRS issued proposed regulations and aim to clarify the 0.9% Additional Medicare Tax now imposed on higher income individuals.

The rules provide specific guidance with respect to the employer’s withholding and reporting obligations as well as the process for making adjustments and claiming refunds.

Employers who failed to implement these new procedures have until December 31, 2013, to correct any underpayments associated with the Additional Medicare Tax.