Last year, the Sixth Circuit, in United States v. Quality Stores, Inc., affirmed a lower court decision that severance payments were not subject to FICA (Social Security) taxes. The government appealed and the Supreme Court is expected to decide later this Spring whether severance payments are subject to FICA (social security) taxes. In the interim, taxpayers that made severance payments in 2010 should file a protective claim for a FICA tax refund no later than April 15, 2014. This protective claim will preserve the taxpayer’s right to a refund should the Supreme Court hold that severance payments are not subject to FICA (social security) taxes.