Tip of the Day: Beware COBRA subsidy audits

As if the venomous beast known as the COBRA subsidy hasn’t been a tough enough snake for employers to charm, now companies have to worry about getting bitten by the IRS.

According to its website, law firm Miller & Chevalier “has learned that the IRS has already begun audits of employers and insurers claiming the subsidy on their 2009 Forms 941 (Employer Quarterly Federal Tax Return). The IRS information document request asks for the identity of all individuals represented on line 12b of the Form 941, each individual’s request for the COBRA subsidy, and a copy of the insurance premium invoice to the employer with proof that the employee paid the premium.”

Again, I’m no attorney, so all I can do is offer you the latest from EBN on the COBRA subsidy and my sincere hopes that the Ghost of Subsidies Past doesn’t pay you a visit this holiday season.