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Question 135: Under IRC 414(n)(4)(B), who is "a person who is an employee of the recipient (whether by reason of this subsection or otherwise)"? It seems to me that in order to be considered a "recipient", there has to be a leasing agreement in place. Once the person is hired full-time, "recipient" status goes away. I read this section to apply primarily to someone who has met the "leased employee" definition. How else does one become an "employee of the recipient?" If my reading is correct, doesn't the remainder of the section merely say that any service completed before (not just after) the person met the leased employee criteria is counted? |
Answer: Let's take a look at the particular section to which the question refers: "In the case of a person who is an employee of the recipient (whether by reason of this subsection or otherwise), for purposes of the requirements listed in paragraph (3), years of service for the recipient shall be determined by taking into account any period for which such employee would have been a leased employee but for the requirements of paragraph (2)(B)." |
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