IRS Updates

 

Scammers Target Tax Pros with Fake Software Update Email
(CPA Practice Advisor) - The IRS is warning tax pros that scammers are now using fake emails that pretend to be from tax software providers and tries to trick recipients into clicking on a bogus software update link.
CPE Standards Update Accommodates New Forms of Learning
(JofA) - CPAs will be able to receive continuing professional education (CPE) credit for instruction received in nano-learning and blended learning platforms under new standards issued Tuesday.
How to Recover a Lost or Corrupt Document in Microsoft Word 2016
(How-to-Geek) - Have you ever had a troublesome .doc or .docx file Word that you can’t seem to open? Or even lost a document completely, with all your hard work gone with it?
Man Shocked To Receive Tax Notice Advising He Might Owe Trillions
(Forbes) - Although we are changing your tax code you may still not pay enough tax by 5 April 2017. We think the amount you owe HMRC is £14,301,369,864,489.03.... Hembrough said that it would take him 369 million years to pay off that much in tax on his current salary.
Ford to offer self-driving cars without steering wheels by 2021
(Computer World) - The autonomous vehicles would be for ride-hailing or ride-sharing services; vehicles for consumers would come later

FAQs about Affordable Care Act Implementation Part XI

Premium Tax Credit:

Federal Poverty Level

  TY14 Return TY15 Return
1 Individual $11,490 (100% FPL)-
$45,960 (400% FPL)

$11,670 (100% FPL)-
$46,680 (400% FPL)

Family of 2 $15,510 (100% FPL)-
$62,040 (400% FPL)

$15,730 (100% FPL)-
$62,920 (400% FPL)

Family of 4

$23,550 (100% FPL)-
$94,200 (400% FPL)

$11,490 (100% FPL)-
$95,400 (400% FPL)

 

Phase-in of Penalty

 

Percentage of Household Income 1% 2% 2.5%
Flat Dollar Amount
(1/2 for Individuals under 18 years old)
$95 per
adult
$325 per
adult

$695 per
adult

  2014 2015 2016

 

The following source domuments will be used to support ACA computations starting 2015 tax year

  • Form 1095-B Health Coverage Statement
  • Form 1095-C, Employer-Provided Health Coverage Statement
  • No Changes for Form 1095-A

Form 1095-B

Health Coverage Statement

  • Issued by a government-sponsored program, eligible employer-sponsored plan, individual market plan or miscellaneous coverage plan
  • All employers that provide self-insured health coverage to their employees are treated as coverage providers
  • Information about whether taxpayer, spouse and dependents had qualifying health coverage for some or all months during year
  • Individuals with minimum essential coverage not subject to individual shared responsibility payment

Form 1095-C

  • Employer Provided Health Insurance Offer and Coverage Statement
  • Employers with 50 or more full-time employees required to file Form 1095-C with employee and IRS
  • Includes information about whether employer offered qualifying health coverage to employee, spouse and dependents for some or all months during the year

Small Business Health Care Credit

  • Available to small businesses that offer insurance
  • Help with cost of providing health care coverage for low and moderate income workers
  • Maximum credit is 50% of premiums paid for small business employers and 35% for small tax- exempt employers
  • Small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace
  • Credit available to employers for 2 consecutive taxable years

USSC Rules on Marriage Equality

  • All states now must license a marriage between two people of same sex
  • Same sex married couples must file returns as married
  • No longer have to file a married return for federal purposes and 2 individual returns in state that didn't adopt same sex marriage
  • We're not sure if domestic  partnerships and civil unions will fade away (these were marriage subsistutes)

Direct Deposits of Refund to a myRA® Account

  • Starter retirement account offered by Department of Treasury
  • Can have refund directly deposited to new retirement savings program called myRA®
  • Must already have a  myRA® account
  • For more information and to open a myRA® account online, visit
    myRA| my Retirement Account

Adjusted Filing Deadlines for TY16

 

Entity TY15 and Prior TY16 and After
Partnerships
  • April 15 (calendar year)
  • 15th day of 4th month following close of fiscal year
  • March 15 (calendar year)
  • 15th day of 3rd month following close of fiscal year

S corporations

(no change)

  • March 15 (calendat year)
  • 15th day of 3rd month following close of fiscal year
  • March 15 (calendat year)
  • 15th day of 3rd month following close of fiscal year
C Corporations
  • March 15 (calendat year)
  • 15th day of 3rd month following close of fiscal year
  • April 15 (calendat year)
  • 15th day of 4th month following close of fiscal year
  • C corporations with tax years ending on June 30, current filing date (September 15) remains in effect until TY beginning after 12/31/25 and will be extended to October 15 thereafter
  • Calendar year C corporations: automatic extension is 5 months (September 15) until TY beginning after 12/31/25, then extension is increased to 6 months (October 15)