*Severance Payments--In a surprising new case, a District Court in Michigan ruled that severance payments should not be treated as "wages" for employment tax purposes. Instead, the court characterized the payments as wage-replacement social benefits. As a result, a business that has downsized may choose to file a protective refund claim for past open years. Note: The IRS is expected to appeal this decision.

 *Office Space--Are you redesigning your office? The latest trend is to utilize smaller individual workspaces and dedicate more space to interactive use. For instance, space is being optimized for various kinds of collaborations, ranging from large formal meetings in a conference room to chance encounters in the hallway. But you should still tailor your office space around the specific needs of your business.

TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.