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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
October 27, 2020
Tax Briefing(s)

The Treasury and IRS have issued guidance on the recent order by President Trump to defer certain employee payroll tax obligations on wages paid from September 1, 2020, through December 31, 2020. Under the guidance:


The IRS has released the 2020-2021 special per diem rates. Taxpayers use the per diem rates to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from home. These special per diem rates include the special transportation industry meal and incidental expenses (M&IEs) rates, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. Taxpayers using the rates and list of high-cost localities provided in the guidance must comply with Rev. Proc. 2019-48, I.R.B. 2019-51, 1390.


The Treasury and IRS have issued final regulations that limit the Code Sec. 245A dividends received deduction and the Code Sec. 954(c) exception on distributions supported by certain earnings and profits not subject to the integrated international tax regime created by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). Proposed regulations and temporary regulations, issued on June 18, 2019, are adopted and removed, respectively.


Treasury has issued final and amended regulations on the rules for distributions made by terminated S corporations during the post-termination transition period (PTTP). These regulations apply after an S corporation has become a C corporation.


Final regulations clarify that the amount of the rehabilitation credit for a qualified rehabilitated building (QRB) is determined as a single credit in the year the QRB is placed in service. This is the case even though the credit is allocated ratably over a five-year period. The final regulations adopt without modification proposed regulations released earlier this year ( NPRM REG-124327-19).


The IRS has released final regulations that clarify the definition of a "qualifying relative" for purposes of various provisions for tax years 2018 through 2025. These regulations generally affect taxpayers who claim federal income tax benefits that require a taxpayer to have a qualifying relative.


The IRS has announced that Medicaid coverage of Coronavirus Disease 2019 (COVID-19) testing and diagnostic services is not minimum essential coverage for purposes of the premium tax credit under Code Sec. 36B.


The IRS has released guidance in the form of questions and answers with respect to certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), and the Bipartisan American Miners Act of 2019 (Miners Act).


Final regulations provide additional guidance on the base erosion and anti-abuse tax (BEAT) under Code Sec. 59A. The regulations also address certain aspects of the BEAT under Code Secs. 1502 and 6031.


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