June 2021

TAX DEVELOPMENTS

Groom Law Group Asks IRS to Provide Guidance on Repurposing Surplus VEBA Assets

On May 28, Groom Law Group principals Louis Mazawey and Kathryn Bjornstad Amin sent a letter to the IRS, recommending that Treasury and the IRS publish official guidance confirming that the 100% excise tax on VEBA reversions would not apply when an employer “repurposes” surplus retiree benefit assets in a welfare benefit fund to provide health and other welfare benefits to active employees.

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