Thomas M. Cryan, Jr. concentrates his practice on various tax matters, including:
- Executive compensation
- Fringe benefits
- Employment tax areas
He counsels clients regarding tax audits as well as drafting and amending fringe benefit policies and compensation plans. Tom also assists clients in structuring compensation arrangements to comply with Section 162(m) of the Internal Revenue Code (IRC). He has experience in the application of Code section 3121 (FICA), the deduction rules under Code Section 274 and the Golden Parachute provisions under Code section 280G.
Tom’s experience encompasses employee benefits and information reporting, in particular, dealing with the income and employment tax treatment of settlement payments, use of corporate aircraft, statutory fringe benefits, nonqualified deferred compensation, travel benefits, wellness programs and employer obligations under the Affordable Care Act. In addition, he has assisted clients with the state tax implications of mobile workforces. Tom has also represented clients before the IRS and the U.S. Department of Treasury in connection with policy initiatives.
Tom is positioned to work closely with employers to resolve complex payroll and information reporting issues. He works with employer’s tax, benefits, payroll and legal departments to resolve executive compensation and employment tax issues in the most practical and cost effective manner.
Tom’s successes related to benefits include:
- Assisted a large biotechnology company in the application of the IRS rules impacting spousal travel, the personal use of corporate aircraft, mixed business-personal flights and the recently revised deduction disallowance rules for the entertainment use of corporate aircraft
- Assisted an employer with highly mobile workforce in designing internal procedures for the proper taxation of travel reimbursements and per diem payments
- Represented a Fortune 100 company at a meeting with the U.S. Department of the Treasury regarding the taxation of wellness programs
- Represented a Fortune 100 company at IRS appeals on the tax treatment of relocation reimbursements and use of corporate aircraft. IRS conceded the issues in full
- Represented an employer on the taxation of on-site employer cafeteria and the tax treatment of conferences and conventions
Due to his knowledge of employment taxes, he has:
- Assisted a large financial institution in internal restructuring in order to avoid the FICA restart provisions, and therefore reduce the company's out-of-pocket employment tax costs while addressing the company's concerns regarding its internal payroll tax administration
- Represented a large manufacturing company in protesting a large employment tax deposit penalty. Penalty was abated at IRS Appeals
- Worked with a large multistate employer in defending a state income tax audit on the withholding of nonresident wage income
He has achieved the following regarding executive compensation:
- Obtained more than a dozen Section 162(m) private letter ruling (PLRs) over the last 10 years
- Worked with target company in analyzing potential Section 280G implications of compensation plans and employment agreements
Tom is an accomplished public speaker and regularly presents at professional organizations such as the Tax Executive Institute, American Bar Association and American Benefits Council.