IRS Tax Form Changes for 2016 Posted on 26 Jul 10:59
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:
IRS Tax News for August, 2015, includes information on IRS scams, IRS help in various languages, and tax benefits for people with disabilities.
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.
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.
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:
More information can be found here.
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.
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.
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
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:
The Payer's name and address block will be expanded from one print row to two print rows for 2015.
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.
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.
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.
A new check box was added so that foreign financial institutions with a chapter 4 requirement can report U.S. accounts that they maintain.
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.
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.
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.
Completion of box 1b for "Card Not Present" transactions is now mandatory for 2015. It was optional on the 2014 form.
A 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.
The following forms are mandatory filing for Tax Year 2015.
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.
Affordable Care Act and Health Insurance Penalty
This is the biggest change for 2015, and the biggest change in tax law in years. The
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.
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.
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.
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.
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.