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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
January 20, 2021
Tax Briefing(s)

Final regulations clarify the definition of "real property" that qualifies for a like-kind exchange, including incidental personal property. Under the Tax Cuts and Jobs Act (TCJA, P.L. 115-97), like-kind exchanges occurring after 2017 are limited to real property used in a trade or business or for investment.


The IRS has released rulings concerning deductions for eligible Paycheck Protection Program (PPP) loan expenses.


The IRS has issued final regulations under Code Sec. 274 relating to the elimination of the employer deduction of for transportation and commuting fringe benefits by the Tax Cuts and Jobs Act ( P.L. 115-97), effective for amounts paid or incurred after December 31, 2017. The final regulations address the disallowance of a deduction for the expense of any qualified transportation fringe (QTF) provided to an employee of the taxpayer. Guidance and methodologies are provided to determine the amount of QTF parking expenses that is nondeductible. The final regulations also address the disallowance of the deduction for expenses of transportation and commuting between an employee’s residence and place of employment.


As part of a series of reminders, the IRS has urged taxpayers get ready for the upcoming tax filing season. A special page ( https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes), updated and available on the IRS website, outlines steps taxpayers can take now to make tax filing easier in 2021.


This year marks the 5th Annual National Tax Security Awareness Week-a collaboration by the IRS, state tax agencies and the tax industry. The IRS and the Security Summit partners have issued warnings to all taxpayers and tax professionals to beware of scams and identity theft schemes by criminals taking advantage of the combination of holiday shopping, the approaching tax season and coronavirus concerns. The 5th Annual National Tax Security Awareness Week coincided with Cyber Monday, the traditional start of the online holiday shopping season.


The IRS has issued proposed regulations for the centralized partnership audit regime...


The IRS has issued final regulations with guidance on how a tax-exempt organization can determine whether it has more than one unrelated trade or business, how it should identify its separate trades and businesses, and how to separately calculate unrelated business taxable income (UBTI) for each trade or business – often referred to as "silo" rules. Since 2018, under provisions of the Tax Cuts and Jobs Act (TCJA), the loss from one unrelated trade or business may not offset the income from another, separate trade or business. Congress did not provide detailed methods of determining when unrelated businesses are "separate" for purposes of calculating UBTI.


The IRS has modified Rev. Proc. 2007-32, I.R.B. 2007-22, 1322, to provide that the term of a Gaming Industry Tip Compliance Agreement (GITCA) is generally five years, and the renewal term of a GITCA is extended from three years to a term of up to five years. A GITCA executed under Rev. Proc. 2003-35, 2003-1 CB 919 and Rev. Proc. 2007-32 will remain in effect until the expiration date set forth in that agreement, unless modified by the renewal of a GITCA under section 4.04 of Rev. Proc. 2007-32 (as modified by section 3 of this revenue procedure).


Final regulations issued by the Treasury and IRS coordinate the extraordinary disposition rule that applies with respect to the Code Sec. 245A dividends received deduction and the disqualified basis rule under the Code Sec. 951A global intangible low-taxed income (GILTI) regime. Information reporting rules are also finalized.


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