A de minimis settlement, in general, is a settlement between EPA and those parties who are responsible for a minimal contribution, in amount and toxicity, of the hazardous substances at a Superfund
Superfund
Superfund or Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) is a United States federal law designed to clean up sites contaminated with hazardous substances and pollutants.
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What is a de micromis settlement?
"De micromis" settlements are a subset of de minimis contributor settlements which may be available to parties who generated or transported a minuscule amount of waste to a Superfund site. You will need Adobe Reader to view some of the files on this page.
What is de minimis/de micromis?
De Minimis/De Micromis Policies and Models. This category outlines EPA's procedures for de minimis and "de micromis" settlements. A de minimis settlement, in general, is a settlement between EPA and those parties who are responsible for a minimal contribution, in amount and toxicity, of the hazardous substances at a Superfund site,...
What does'de minimis'mean?
She has taught at business and professional schools for over 35 years and written for The Balance SMB on U.S. business law and taxes since 2008. The term "de minimis" describes something that's too small or insignificant to be of importance. It derives from the Latin phrase "de minimis non curat lex," which translates to "...about minimal things."
Is a $10 error de minimis in a lawsuit?
A $10 error would be de minimis in a lawsuit over a $1 million account. The concept of de minimis is important in employee benefits, in capital gains taxes, and in other business tax areas.
What does "de minimis" mean?
Legal Definition of de minimis. : lacking significance or importance : so minor as to be disregarded — compare substantial. Note: An action may be dismissed if the claim or cause is considered de minimis.
What is the meaning of the de minimis rule?
At first, the shortened phrase was simply used to refer to the legal doctrine itself ("the de minimis rule"). Then it came to be used more broadly as an adjective ("de minimis contacts with the defendant"). Finally, de minimis leaked out of the courtroom and into the world at large.
What does "de minimis non curat lex" mean?
Perhaps we should clarify: the legal doctrine of de minimis non curat lex ("the law does not concern itself with trifling matters") has been around for a while, but use of de minimis on its own is relatively recent. At first, the shortened phrase was simply used to refer to the legal doctrine itself ("the de minimis rule").
What is a de minimis settlement?
de minimis settlement. A settlement agreement between the Environmental Protection Agency (EPA) and a property owner who may be technically liable for cleanup under the strict liability provisions of the Superfund, but who did not create nor contribute to the contamination and who acquired the property without knowing or having reason to know ...
Is De minimis discretionary?
However, de minimis settlements are entirely discretionary with U.S. Managing environmental liabilities for beneficial reuse. The number of de minimis settlements since 1986 can be counted on one hand. Despite problems Superfund still is best hope. This is the fifth in a series of de minimis settlements at the site.
What is De Minimis?
De Minimis is a legal term that has been applied in many ways, including to copyright law, business law, and income tax law. “De Minimis” comes from the Latin phrase “de minimis non curat lex” which translates to “The law does not concern itself with trifles.” Today, the term is used across a variety of contexts to describe matters that are too small or trivial to be deemed worthy of consideration by a regulating authority.
What is a De Minimis Benefits Example?
De Minimis benefits include a variety of products or services that employers may provide to employees, and which employees are not required to claim as part of their gross income.
What is the de minimis fringe?
This term refers to any property or service provided to the individual by an employer which is “so small as to make accounting for it unreasonable or administratively impracticable.”
Why are fringe benefits considered de minimis?
As you may notice, many of these benefits qualify as De Minimis fringe because they are administered by the employer only occasionally—not on a regular basis or as part of the employee’s agreed compensation package.
When is a corporation required to comply with the De Minimis Rule?
From a compliance perspective, corporations are required to comply with the De Minimis Rule created in the United States tax code when reporting the gross income of an employee.
Do de minimis benefits have to be reported?
As a result, they must be reported as part of the employee’s gross annual income.
Why are early de minimis settlements so impractical?
The explanation given most frequently by the regional offices as to the impracticality of early de minimis settlements is the lack of sufficiently reliable information on cleanup costs. EPA’s recent guidance document has attempted to deal with this question on a regional level. Paragraph 4 (a) suggests this task is better accomplished on the national level. In general, there is no reason for a regional office to confine itself to its own sites in determining the costs of similar cleanups, as the inventory of comparable sites that have progressed sufficiently in the cleanup process may be small or nonexistent. Furthermore, there is no central repository for de minimis settlement documents, which might contain relevant data, and no EPA database contains their full terms. While this information can generally be obtained from the individual regional offices, this process is cumbersome and time-consuming.
Why is it important to settle de minimis?
To understand the context for de minimis settlements, it is important to review both the process of cleanup of hazardous waste sites and the allocation of responsibility for this cleanup among EPA and the PRPs . One of the most compelling reasons for offering early settlements to parties who bear only a small share of the liability is the very long time (averaging 12 years) that elapses between the discovery of a site and its ultimate cleanup. Settling with de minimis parties relatively early in this process can save them substantial legal and consulting costs.
What is substantial conflict between EPA and de minimis?
An element over which there is substantial conflict among EPA and the de minimis and major parties is the premium to be charged in exchange for a waiver of any cost overrun and the risk that future events may trigger the possibility of further action by EPA against a party that has already settled (“reopen ers”). The study found wide variation, ranging from approximately 50% to 250%, not readily explained merely by the different stages at which the settlements were entered. Moreover, there does not appear to be a standardized method for calculating premiums. Paragraph 4 (b), like paragraph 3 (a), intended to reduce the potential for conflict by standardizing the approach.
Should the EPA negotiate de minimis settlements?
1. EPA should make further efforts to establish procedures and incentives to negotiate de minimis settlements as a standard practice at all multi-party Superfund sites involving de minimis parties. EPA should not rely on global settlements as the preferred mechanism for resolving the liability of de minimis parties.
What is a de minimis benefit?
In general, a de minimis benefit is one for which, considering its value and the frequency with which it is provided, is so small as to make accounting for it unreasonable or impractical. De minimis benefits are excluded under Internal Revenue Code section 132 (a) (4) and include items which are not specifically excluded under other sections ...
How to determine if a benefit is de minimis?
In determining whether a benefit is de minimis, you should always consider its frequency and its value. An essential element of a de minimis benefit is that it is occasional or unusual in frequency. It also must not be a form of disguised compensation. Whether an item or service is de minimis depends on all the facts and circumstances.
How are de minimis fringe benefits reported?
If the benefits qualify for exclusion, no reporting is necessary. If they are taxable, they should be included in wages on Form W-2 and subject to income tax withholding. If the employees are covered for social security and Medicare, the value of the benefits are also subject to withholding for these taxes. You may optionally report any information in box 14 of Form W-2.
Is a service de minimis?
Whether an item or service is de minimis depends on all the facts and circumstances. In addition, if a benefit is too large to be considered de minimis, the entire value of the benefit is taxable to the employee, not just the excess over a designated de minimis amount . The IRS has ruled previously in a particular case that items with ...
Why is de minimis important?
The concept of de minimis is important in employee benefits, in capital gains taxes, and in other business tax areas. A small benefit might not be subject to income tax. The amount can vary depending on circumstances.
Why are some benefits considered de minimis?
Minimal or occasional employee benefits are considered de minimis. In some cases, it's because the amount is small, such as the holiday turkey. Other benefits are considered de minimis because it's simply too difficult to sort out employee personal use from business use, such as the office copier.
What is a de minimis on a 1099?
On Form 1099-S, Proceeds from Real Estate Transactions, a transfer of less than $600 is considered de minimis. De minimis limits are considered in capital gains tax on the purchase of discount bonds. A discount of less than a quarter of a point per year is effectively too small to count for tax purposes.
Is "occasional" a de minimis benefit?
Notice the use of the word "occasional" in the list of de minimis benefits. A benefit is almost never de minimis if it's provided routinely.
Is a cell phone considered a de minimis benefit?
Cell phones are not considered a de minimis benefit if the phone is provided:
Is executive dining room de minimis?
And if it isn't de minimis, it's taxable to the executives .
Is a de minimis benefit taxable?
Many benefits provided by employers are taxable as income to the employees, but a de minimis benefit is not . From a tax standpoint, a de minimis benefit is a small amount of employee compensation, and Internal Revenue Code section 132 (a) (4) states that these small amounts are not subject to taxation. They're not worth the time and effort it would take to account for them.
