IRS may have bad news for double-dippers
A new twist emerged this week in the debate over "double-dipping."
Some Florida officials collecting both a pension and a salary could be facing federal tax problems, possibly even the repayment of thousands of dollars.
IRS regulations prohibit employees who have not reached normal retirement age from collecting retirement benefits unless they are bona fide retirees and have terminated employment with no anticipation of continuing to work at the same job, according to a Washington tax lawyer who advises Florida pension officials.
That could present a problem for those Florida double-dippers who have taken advantage of a loophole in the law that has allowed them to "retire," stay away from their jobs for 30 days and then return, collecting their salary and a monthly pension. (story here and list of double dippers here.)