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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)

On December 20, President Donald Trump signed the bipartisan, year-end government spending and tax package, just hours before federal funding was set to expire. Trump's signature on the over 2,000-page spending package avoided a government shutdown.


The Fifth Circuit U.S. Court of Appeals ruled that the Patient Protection and Affordable Care Act’s (ACA) ( P.L. 111-148) individual mandate is unconstitutional because it can no longer be read as a tax, and there is no other constitutional provision that justifies this exercise of congressional power. However, the central question of whether the rest of the ACA remains valid after Congress removed the penalty for not having health insurance remained unanswered. Instead, the case was sent back to the district court to reconsider how much of the ACA could survive without the individual mandate penalty.


Proposed qualified opportunity zone regulations issued on October 29, 2018 ( REG-115420-18) and May 1, 2019 ( REG-120186-18) under Code Sec. 1400Z-2 have been finalized with modifications. The regulations. which were issued in a 550 page document, are comprehensive.


The IRS has issued final regulations that provide guidance on transfers of appreciated property by U.S. persons to partnerships with foreign partners related to the transferor. Specifically, the regulations override the general nonrecognition rule under Code Sec. 721(a) unless the partnership adopts the remedial allocation method and certain other requirements are satisfied. The regulations affect U.S. partners in domestic or foreign partnerships.


The IRS has released Publication 5382, "Internal Revenue Service Progress Update / Fiscal Year 2019—Putting Taxpayers First." This new annual report describes accomplishments across the agency, and highlights the work of IRS employees during the past year. It covers a variety of taxpayer service efforts, including development of the new Taxpayer Withholding Estimator, as well as operations support efforts on areas involving information technology modernization, human capital office initiatives, and others.


Bridget Roberts, the Acting National Taxpayer Advocate, released her 2019 Annual Report to Congress. The report discusses the key challenges facing the IRS regarding the implementation of the Taxpayer First Act, inadequate taxpayer service and limited funding of the agency. Further, Roberts released the third edition of the National Taxpayer Advocate’s "Purple Book," which presents 58 legislative recommendations designed to strengthen taxpayer rights and improve tax administration.


The IRS has modified the applicability dates for proposed regulations under Code Sec. 382 that were issued with NPRM REG-125710-18, September 10, 2019 (2019 proposed regulations). The IRS is withdrawing the text of the proposed applicability dates, and proposing revised applicability dates. The newly issued proposed rules would also provide transition relief.


The Treasury and IRS have issued final regulations on the due diligence and reporting rules for persons making certain U.S. source payments to foreign persons. Guidance is also provided on reporting by foreign financial institutions on U.S. accounts. The regulations are effective on the date the regulations are published in the Federal Register.


Taxpayers have been provided with additional guidance for complying with the Code Sec. 871(m) regulations on dividend equivalent payments for 2021, 2022, and 2023. The Treasury Department and the IRS intend to amend the regulations to delay the effective/applicability date of certain rules. Further, the phase-in period provided in Notice 2018-762, I.R.B. 2018-40, 522, has been extended.


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