IRS to audit payroll tax, compensation-related rules

IA&B has learned that the IRS will launch a new compliance-examination program focused on employment taxes. The program, set to launch in late 2009 and continue for three years, will include a series of audits -- conducted on 6,000 randomly selected businesses -- to determine if they are properly following worker classification, fringe benefits, officer compensation and reimbursed expenses rules. Our clients are encouraged to review their accounting procedures and ensure they are compliant.

MD Condominium Law Clarification

In an April 2008 decision by the Maryland Court of Appeals, it was held that the Maryland Condominium Act did not require the master insurance policy of the condominium association to cover damage to an individual condominium unit. Instead, where the master policy would not apply, the policy of the individual condominium unit would cover any damage done to the owner's property or individual unit.
Erie Insurance Exchange filed a motion for reconsideration with the Maryland Court of Appeals to have the decision reversed on the Tuckerman case. The motion for reconsideration was denied by the court.  The court also denied the request for a delay, which was supported by the Maryland Insurance Administration, in the effective date of the decision.

In early April 2009, the Maryland General Assembly passed two pieces of legislation correcting the Maryland condominium law and restoring clarity for agents. HB 287, sponsored by Del. Pam Beidle (D-Linthicum), who is herself an insurance agent, was IA&B's coalition-driven bill to address the condo law change. A similar piece of legislation in the Senate, SB 201, was amended to mirror HB 287. IA&B contacted Governor Martin O'Malley asking for his quick action in signing HB 287 into law. In the end, both HB 287 and SB 201 were signed by the governor on May 19, 2009. 

The effective date of both pieces of legislation was June 1, 2009. IA&B has prepared resources for member agents to get you up-to-speed on the latest changes.