News

IRS Tax Form Changes for 2016 Posted on 26 Jul 10:59

1099-MISC Filing Deadline Change

 

If entering data in Box 7, the filing deadline is January 31, 2017, regardless of paper or electronic filing method

If no data in Box 7, the paper filing deadline is February 28, 2017, and the electronic deadline is March 31, 2017

No change to the January 31 due date for recipient copies

W-2 Filing Deadline Change

 

2016 forms must be filed with the SSA by January 31, 2017, regardless of using paper or filing online

Previous e-file deadline was March 31

W-2 Extensions

 

Extensions to file are no longer automatic and one 30-day extension may be requested

Application Form 8809 must be used along with a detailed explanation on why additional time is needed

IRS will only grant extensions for extraordinary circumstances or catastrophe

W-2 Penalties

 

$50 per W-2 if the forms are filed within 30 days of the due date

$100 per W-2 if the forms are filed more than 30 days after the due date but before August 1

$260 per W-2 if the forms are filed after August 1, corrections are not filed or the W-2 is not filed at all


IRS Extends the ACA Reporting and E-Filing Deadline Posted on 12 Jan 08:55

The IRS has announced that they are extending the 2016 due dates for ACA information reporting. 

Specifically, businesses now have until:

• Forms 1095-B and Form 1095-C: businesses now have until March 31, 2016 to supply employees with the 2015 Form 1095-B and Form 1095-C. The previous date was January 31.

• Forms 1095-B and Form 1095-C: businesses now have until May 31, 2016 to file forms 1095-B and 1095-C with the IRS, if submitting paper forms. The previous date was February 29.

• Forms 1095-B and Form 1095-C: businesses now have until June 30, 2016 to submit forms 1095-B and 1095-C to the IRS if filing electronically. The previous date was March 31.

Though the deadlines have changed, the requirements are still the same, and covered businesses are still obligated to file.

Our ACA tax forms can be found here:

1095-B ACA Health Coverage - Laser

1095-B ACA Health Coverage - Continuation - Laser

1095-B ACA Health Coverage - Blank

1095-B ACA Health Coverage - Pressure Seal

1095-B Double Window Envelope

1095-C ACA Employer-Provided Health Insurance Coverage - Laser

1095-C ACA Transmittal of Employer-Provided Health Coverage - Pressure Seal

1094B-T ACA Transmittal of Health Coverage - Laser

1094C-T ACA Transmittal of Health Coverage - Laser

 


5 Minute Guide to ACA Tax Reporting Posted on 30 Oct 10:52


New ACA Tax Forms for 2015 Posted on 23 Sep 08:49

New tax forms are required this year for the Affordable Care Act

 The Affordable Care Act's Employer Shared Responsibility Rule will require employers to file a whole new set of tax forms in 2016. Businesses with 50 or more employees will need to provide employees with forms containing information about health plan coverage. We expect 250-300 million new forms to be issued.

What Are the Affordable Care Act Forms?


IRS Tax News for August, 2015 Posted on 11 Aug 14:25

IRS Tax News for August, 2015

IRS Tax News for August, 2015, includes information on IRS scams, IRS help in various languages, and tax benefits for people with disabilities. 

1. IRS Warns Taxpayers to Guard Against New Tricks by Scam Artists; Losses Top $20 Million

The IRS has announced the emergence of new variations of tax scams that can deceive and cause financial damage to individuals. The IRS advises taxpayer to be on high alert against scammers posing as IRS agents and targeting older citizens and newly arrived immigrants without a form grasp of tax laws or the English language. Scammers now have the capability to alter what appears on your telephone caller ID to make it seem like they are with the IRS or another government agency. Scam artists will generally appear hostile and threaten victims while arrest if urgent action is not taken. Suspected scammers can be reported to the Treasury Inspector General by calling 1-800-366-4484.

More information can be found here.

2. IRS Spotlights Year-Round Tax Help in 6 Languages

The IRS now has a wide range of publications and online resources in various languages, including English, Spanish, Chinese, Korean, Russian, and Vietnamese. These multilingual resources are available throughout the year and include such publications as the Taxpayer Bill of Rights and Your Federal Income Tax, a comprehensive tax guide for individuals.

More information can be found here.

3. IRS Spotlights Tax Benefits and Services for People With Disabilities

In coordination with the 25th anniversary of the Americans With Disabilities Act, the Internal Revenue Service is spotlighting a number of tax benefits and services that can help taxpayers with disabilities.

Benefits for People with Disabilities include:

  • ABLE Accounts - this new law allows states to offer specially designed, tax-favored ABLE accounts to people with disabilities who became disabled before age 26. ABLE accounts help people with disabilities and their families to save for and pay for disability-related expenses.
  • Tax Credits - Low-and moderate-income workers and working families often qualify for the Earned Income Tax Credit, which is a refundable credit that varies by income, filing status and family size. Unfortunately, many taxpayers who qualify for the credit don't file a tax return.
  • Deductions - taxpayers with disabilities are qualified to deduct various impairment-related work expenses on their federal income tax return. Additionally, many disability-related expenses qualify as deductible medical expenses.

More information can be found here.


IRS Tax News for July, 2015 Posted on 21 Jul 10:33

IRS Tax News for July, 2015

IRS Tax News for July, 2015 includes webinars for the Affordable Care Act, the National Taxpayer Advocate Mid-Year Report, and Penalty Relief for Small Businesses.

 

 

1. IRS Offers Webinars on Affordable Care Act Provisions for Employers and Coverage Providers

The IRS has set up a series of webinars so that companies can learn more about the Affordable Care Act  and how it affects companies. The webinars are designed for business owners, employee benefits managers, health coverage providers, and tax managers.

There are three webinars offered, and three dates are offered for each webinar (all times are Eastern Standard Time):

Employer Shared Responsibility and Information Reporting

July 28, 11 a.m. – 12: 30 p.m. – Click here to register
Aug. 20, 1 – 2:30 p.m. – Click here to register
Sept. 16, 1:30 – 3 p.m. – Click here to register

Employer-Sponsored Health Coverage Information Reporting Requirements for Applicable Large Employers

July 29, 1 – 2 p.m. – Click here to register
Aug. 11, 1 – 2 p.m. – Click here to register
Sept. 10, 11 a.m. – 12 p.m. – Click here to register

Information Reporting Requirements for Providers of Minimal Essential Coverage

July 30, 1 – 2 p.m. – Click here to register
Aug. 26, 1 – 2 p.m. – Click here to register
Sept. 22, 1 – 2 p.m. – Click here to register

2. National Taxpayer Advocate Reviews Filing Season and Identifies Priority Areas and Challenges in Mid-Year Report to Congress

IR-2015-97, July 15, 2015 — Nina E. Olson, a National Taxpayer Advocate has released her mid-year report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will address during the upcoming fiscal year. Issues include the IRS’s long-term strategic planning, tax-related identity theft, and administration of the Patient Protection and the Affordable Care Act (ACA). The report also presents highlights of the recently concluded filing season. For more information, click here.

3. Small Businesses Can Get IRS Penalty Relief for Unfiled Retirement Plan Returns

IR-2015-96, July 14, 2015 —The IRS is encouraging eligible small businesses that did not file certain retirement plan returns to take advantage of a low-cost penalty relief program enabling them to quickly come back into compliance. For more information, click here.

Blog Directory

Tax Form Changes for 2015 Posted on 16 Jun 10:51

In a highly anticipated yearly ritual rivaling both the NFL draft and the bracketing of the NCAA basketball tournament, the IRS makes small changes to many of their tax forms every year. The changes may just entail a box here or a line there, but all kinds of speculation - and wagering - precede the release of the changes.

The suspense is now over, as the IRS has announced changes to the following forms:

    Tax Forms That Will Require Reprogramming

    W-2G

    The Payer's name and address block will be expanded from one print row to two print rows for 2015.

    1096

    Big changes on Line 6 - the check box for Form 1099-H was removed, while a check box for Form 1098-Q was added. Additionally, the spacing for all of the check boxes on line 6 was expanded. The amounts reported in Box 13 of Form 1099-INT should now be included in box 5 of Form 1096.

    1099-DIV

    A new check box was added to Form 1099-DIV so that foreign financial institutions with a chapter 4 requirement can report U.S. accounts that they maintain.

    1099-INT

     Box 13 was added to report bond premium on tax-exempt bonds. All later boxes were renumbered accordingly. Also, a new check box was added so that foreign financial institutions with a chapter 4 requirement can report U.S. accounts that they maintain.

    1099-MISC

    A new check box was added so that foreign financial institutions with a chapter 4 requirement can report U.S. accounts that they maintain.

    1099-OID

    As with the 1099-INT and 1099-MISC forms, a new check box was added so that foreign financial institutions with a chapter 4 requirement can report U.S. accounts that they maintain.

    Tax Forms with Reporting Changes - No Reprogramming Required

    W-2

    • Medicaid waiver payments—some Medicaid waiver payments are considered excludable from income for federal income tax purposes.
    • W-2 reports can now be rejected if: Medicare wages and tips are less than the sum of social security wages and social security tips; Social security tax is greater than zero or Social Security wages and tips are reported as zero; Medicare tax is greater than zero or Medicare wages and tips are reported as zero.
    • Form 8922 will now be used for third-party sick pay recap reporting.
    • Virtual currency such as Bitcoin is now subject to federal income tax withholding.

    1042

    • For withholding agents that report amounts withheld by another withholding agent (in box 8), Form 1042-S will now require the reporting of the name and EIN of withholding agent that withheld the tax. This was optional in 2014. Boxes 14a and 14b are to be used for the reporting.
    • Withholding agents that furnish a substitute Form 1042-S to the recipient must furnish a separate substitute Form 1042-S for each type of income or payment. Before, withholding agents could combine all income and payments on a single substitute Form 1042-S.
    • U.S. financial institutions are now required to report payments of the same type of income (as determined by the Income code in box 1) made to multiple financial accounts held by the same beneficial owner on separate Forms 1042-S for each account.

    1098-C

     Filers may no longer truncate a donor’s Social Security Number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on any documents filed with the IRS.

    1099-B

    For a sale of a debt instrument that is a wash sale and has accrued market discount, code “W” should be entered in box 1f, and the amount of the wash sale loss disallowed should be entered in box 1g.

    1099-K

    Completion of box 1b for "Card Not Present" transactions is now mandatory for 2015. It was optional on the 2014 form.

    1099-R

    foreign financial institution with a chapter 4 requirement to report a cash value insurance contract or annuity contract that is a U.S. account held by a specified U.S. person with the FFI may satisfy this requirement by electing to report the account on Form 1099-R.

    2015 Affordable Care Act (ACA) Forms

    The following forms are mandatory filing for Tax Year 2015.

    • 1095-B Health CoverageTo be used by insurers to report information on coverage provided to each enrollee.
    • 1094-B Transmittal of Health Coverage Information Returns - Transmittal for 1095-B forms filed with IRS.
    • 1095-C Employer-Provided Health Insurance Offer and Coverage - To be used by applicable large employers to report information on coverage for each employee.
    • 1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns - Transmittal for 1095-C forms filed with IRS.

    New ACA Reporting Requirements Will Require More Tax Forms Posted on 04 Jun 15:49

    The Affordable Care Act (ACA) Employer Shared Responsibility Rule, under IRS Code Sections 6055 and 6056, will take effect in January 2016 and will require employers to file annual information returns with the IRS and deliver employee statements with health plan coverage information. This new reporting requirement is in addition to the current requirement that healthcare costs must be listed on Form W-2.

    Considering that 300 million tax forms will be filed in the upcoming season, the impact of the new requirement will be widespread. Tax forms that will be required for filing ACA healthcare costs include forms 1094-B, 1094-C, 1095-B and 1095-C. In addition to affected individual taxpayers, the new requirements will significantly affect health insurance companies, businesses with 50 or more employees, and payroll providers.

    We will do our best to keep our customers apprised of changes and offer the necessary forms.


    Important Tax Changes for 2015 Posted on 13 Apr 15:50

    Be prepared, as these tax form changes are happening in 2015.

    Affordable Care Act and Health Insurance Penalty

    This is the biggest change for 2015, and the biggest change in tax law in years. The Affordable Care Act mandates that all Americans either have health insurance or pay a tax penalty for not having it. The penalties began in 2014 at 1% of household income (or $95, whichever is greater), and in 2015 the penalties increase to 2% of income (or $325, whichever is greater. Participants in the marketplace should receive Form 1095-A from the Health Insurance Marketplace. Form 8962 for Premium Tax Credit is also needed for families who get their health coverage through state-run exchanges. More information can be found here.

    Tax Bracket Adjustments

    For 2015, income tax thresholds have again been adjusted for inflation by about 1.6% over 2014. The highest tax rate of 39.6%, for instance, will now apply to single filers with adjusted gross income of more than $413,200 and married couples with adjusted gross income of more than $464,850. Both figures are up about 1.6% from tax year 2014. More information can be found here.

    Standard Deduction

    The standard deduction has also been adjusted for inflation. The deduction for single or married filing separately is up $100 to $6,300, and for married couples filing jointly, the deduction is up $200 to $12,600 for 2015.

    401(k) Limits

    The inflation adjusted limit on employee contributions to a 401(k) plan will increase by $500 from 2014 to $18,000 for workers under 50. Workers over 50 can now contribute an additional $6,000, which is an increase of over over the previous cap of $5,500.

    Flexible Spending Account (FSA) Limits

    Employee-sponsored flexible spending accounts are used for setting aside pretax money to pay for qualified health care expenses such as eyeglasses,physical therapy, day-care, and in-home care. The annual limit on employee contributions to FSAs has increased by $50 from 2014 and is now $2,550. There are no reporting requirements for FSAs on your income tax return. For more information, see here.

    Bitcoin

    Taxpayers who received payments in virtual currency such as bitcoins in 2015 must include the fair market value of the payments in their annual income. Also, taxes will apply for investments in virtual currency. 

    IRA Rollovers

    Beginning in 2015, only a one single rollover can be made from an IRA in a 12-month period. The new IRS rule targets the practice of withdrawing funds and using them as a short-term loan before re-depositing them.

    Alternative Minimum Tax (AMT) Changes

    The alternative minimum tax exemption has been inflation adjusted to $53,600 for individuals and $83,400 for joint filers, which is an increase of 1.5% over 2014.