Interesting news for those double dippers who retire and then return to the same job. They better watch out – the IRS may be looking for them.
According to an article in the St. Pete Times:
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.
Evidently, the issue came up as the Legislature was considering a bill that would prohibit double-dipping.