In Uncategorized on 05/29/2018 at 15:48

Today’s designated hitter from Judge James S (“Big Jim”) Halpern brings to mind the immortal words of the late great William James Basie, as we’re again dealing with who’s inside and who’s outside.

It’s a question of who is inside (or outside) the forbidding walls of the Stony Lonesome, as posed by the Ogden Sunseteers, in Gregory Charles Krug, Docket No. 13502-17W, filed 5/29/18.

Gregory Charles claims some employer failed to withhold “employment taxes” from its workers. IRS, as usual, wants summary J. Gregory Charles says nothing, but Judge Big Jim isn’t so reticent.

IRS puts in the Form 11369 evaluation, which contains this interesting tidbit.

“Social Security and Medicare wages are excluded from inmate services under the provision of Section 218(c)(6) of the Social Security Act. The Federal income tax withholding is dependent on the amount of wages paid which is less than the minimum wage. FIT on these wages would be dependent on other income (investment) earned by the inmates, and whether or not they file a joint return. Because of these unknown factors, this claim will be declined.” Order, at p. 2.

You’ll remember the wages paid to guests of the State of KS were at issue for EITC. If not, and I don’t blame you if you don’t, see my blogpost “Oversoon,” 4/25/17.

Sounds like Gregory Charles may be on a similar trip, but the facts are few, and Judge Big Jim wants more.

“While 42 U.S.C. sec. 418(c)(6) does address services by inmates, we do not understand the relevance of the provision to petitioner’s claim. We also do not understand the relevance of the statement concerning whether inmates owe FIT (we assume “Federal income tax). Petitioner’s claim is with respect to withholding for employment taxes. Since we assume that Whistleblower Office Tax Analyst DD relied on the Form 11369 in recommending to Whistleblower Office Director Lee Martin that he deny an award to petitioner, we require a better understanding of the reasons relied on by Mr. Martin to deny petitioner an award.” Order, at p. 2 (Name omitted).

I take it Judge Big Jim means 42 USC §418(c)(6)(B) “service performed in a hospital, home, or other institution by a patient or inmate thereof,” which is excluded from any deal with a municipality to socially securitize their workers.

But the FIT (do the Sunseteers mean ITW, or Income Tax Withholding?) is another story. Maybe.

I’m sorry Mr. Lee Martin, a delightful luncheon companion, is bothered with this stuff.

Anyway, let IRS show up Monday next in L.A. and do some ‘splainin’.


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