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Pitt loses appeal in lawsuit against IRS

  Tax  -   POSTED: 2007/11/06 13:08

A federal appeals court has overturned a lower court ruling that granted a tax refund of more than $2 million to the University of Pittsburgh and about 200 faculty members who took early retirement.

Pitt sued the federal government on behalf of its former employees in 2004, arguing early retirement payments between 1996 and 2001 were not taxable wages because faculty members surrendered tenure as a condition of receiving the money.

A federal district court judge agreed, in part. But the 3rd U.S. Circuit Court of Appeals overruled that decision.

The 2-1 court majority says the faculty received the money for past service - making it wages. Pitt says it's not clear whether it will appeal.


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