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 Affordable Care Act - New Forms

            In 2010 Congress passed the Affordable Care Act.  Beginning in 2014, there will be new reporting requirements for all individual taxpayers due to this law. 

             Several new forms will be issued to taxpayers this year and next year:

             Form 1095-A:  If you purchased your health insurance through any federal or state health insurance exchange, this form should be mailed to you by January 31, 2015.  Make sure you provide this form to us, since this information is required, if applicable to you, in order to prepare a complete and accurate return.

             Form 1095-B:  This form will be from an insurance company and will report proof of minimum essential coverage so covered taxpayers can avoid penalties.  This form is optional for 2014, so if it applies to you, you may or may not receive this form in 2015, but you will receive one in 2016.

             Form 1095-C:  This form will be from employers to show employee’s proof of coverage.  This form is also optional for 2014, but required to be filed in 2016 for the 2015 filing year.  (If your employer is not subject to the employer mandate – under 50 full time employees – then they will not be required to file this form.)

             If you receive any of these forms, they must be included with your tax information so that we can file a complete and accurate return.  If you do not receive these forms, we will be asking you several new questions this year such as:   Did you have health insurance?  Who provided your coverage?  Were there any gaps in your coverage during the calendar year?  Were all of your dependents covered?

             One last word of caution, if you purchased your health insurance through an exchange and received Premium Reduction Credits, you could be required to pay back part of your Premium Reduction Credits with your tax return if your income is greater than the estimate you used when obtaining your insurance.

             We thank you for your business.

Tax Alerts
Tax Briefing(s)

The IRS has provided guidance regarding whether taxpayers receiving loans under the Paycheck Protection Program (PPP) may deduct otherwise deductible expenses. Act Sec. 1106(i) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136) did not address whether generally allowable deductions such as those under Code Secs. 162 and 163 would still be permitted if the loan was later forgiven pursuant to Act Sec. 1106(b). The IRS has found that such deductions are not permissible.


Treasury and the Small Business Administration (SBA) have worked together to release the Paycheck Protection Program (PPP) Loan Forgiveness Application. According to Treasury’s May 15 press release, the application and correlating instructions inform borrowers how to apply for forgiveness of PPP loans under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act ( P.L. 116-136). The PPP was enacted under the CARES Act to provide eligible small businesses with loans during the COVID-19 pandemic.


Eligible individuals who are not otherwise required to file federal income tax returns for 2019 may use a new simplified return filing procedure to make sure they receive the Economic Impact Payments (EIPs) provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136).


To encourage businesses that have experienced an economic hardship due to COVID-19 to keep employees on their payroll, the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136) has provided several new credits for employers, including a new employee retention credit. The IRS has issued a fact sheet summarizing a few key points about the new credit.


The Treasury Department and the IRS have provided tax relief to certain individuals and businesses affected by travel disruptions arising from the coronavirus (COVID-19) emergency.


The IRS and the Employee Benefits Security Administration are extending certain timeframes during the Outbreak Period for group health plans, disability and other welfare plans, pension plans, and participants and beneficiaries of these plans during the COVID-19 National Emergency. The beginning of the Outbreak Period is March 1, 2020. The end date is yet to be determined.


Due to the 2019 Novel Coronavirus outbreak (COVID-19), the IRS has provided increased flexibility with respect to:

  • 2020 mid-year elections under a Code Sec. 125 cafeteria plan related to employer-sponsored health coverage, health Flexible Spending Arrangements (health FSAs), and dependent care assistance programs; and
  • grace periods to apply unused amounts in health FSAs to medical care expenses incurred through December 31, 2020, and unused amounts in dependent care assistance programs to dependent care expenses incurred through December 31, 2020.

The IRS has released proposed regulations that address changes made to Code Sec. 162(f) by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). The proposed regulations provide operational and definitional guidance on the deductibility of fines and penalties paid to governmental entities.


A partnership was denied a charitable contribution deduction because it had entered in an conservation easement that violated the perpetuity requirement of Code Sec. 170(h)(5) and its regulations. The Tax Court held that if there is a judicial extinguishment of an easement the donee receives a proportionate value of any proceeds.


The IRS has released proposed regulations clarifying that the following deductions allowed to an estate or non-grantor trust are not miscellaneous itemized deductions:


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