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Text of IRS PLR 201415011: VEBA Can Extend Benefits to Domestic Partners of Participants (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Apr. 13, 2014
"Trust represents that the total amount Trust will expend to provide impermissible benefits to domestic partners who are not dependents ... would not exceed three percent (3%) [in any year of the Trust's operation] ... therefore, Trust's Section 501(c)(9) tax-exempt status will not be jeopardized.... [T]he HRA coverage provided to a domestic partner who is a dependent of a Participant within the meaning of Section 152 (or child as defined in Section 152(f)(1)) is not includible in the Participant's gross income.... The fair market value of the coverage provided by Plan to a non-dependent domestic partner of a Participant ... is includible in the gross income of the Participant under Section 61, and is wages for FICA, FUTA, and income tax withholding purposes. The amount of employee FICA attributable to the coverage that is paid by Plan on a Participant's behalf that is not withheld from the Participant's wages is also includible in the Participant's income, and is wages for employment tax purposes.... Trust is the employer under Section3401(d)(1) for purposes of the employment taxes on the amount of wages that result from the HRA coverage provided to a Participant's non-dependent domestic partner. Thus, Trust is required to withhold income tax and the employee portion of the FICA tax on such wages. Trust must also pay the employer portion of the FICA tax and the FUTA tax.... Trust may treat the coverage as provided on an annual basis for purposes of employment tax withholding." [Jan. 13, 2014; released Apr. 11, 2014]

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