The IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans.
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Employee Benefits
Sterling Plan Yields Tarnished Tax Results
Life insurance policies issued on employees as part of the Sterling Plan were part of a split-dollar life insurance arrangement; thus, employees realized income for the benefits , and the corporations could not deduct the payments.
Paying the Price for Cadillac Coverage Under the Affordable Care Act
The PPACA added a new 40% nondeductible excise tax on high-cost health coverage, commonly referred to as the “Cadillac tax.”
Defined Benefit Plans to Be Prohibited From Replacing Annuities With Lump-Sum Payments
The IRS announced that it will amend the Sec. 401(a)(9) required minimum distribution regulations to prohibit the use of lump-sum payments to replace annuity payments in defined benefit plans.
Common Employer Practices May Be Insufficient for New PPACA Reporting Requirement
Beginning in January 2016, "applicable large employers" (ALEs) that are subject to the Patient Protection and Affordable Care Act’s (PPACA’s) employer shared-responsibility provisions under Sec. 4980H will have new reporting requirements under Sec. 6056.
2016 Inflation-Adjusted Amounts for HSAs and High-Deductible Health Plans
The IRS issued the inflation-adjusted figures for calendar year 2016 for the annual contribution limits for health savings accounts and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
Notice Clarifies Provider List Rules for Charitable Hospital Financial Assistance Policies
The IRS clarified the requirement in Regs. Sec. 1.501(r)-4(b)(1)(iii)(F) that a charitable hospital organization include a provider list in its financial assistance policy.
Congress Makes Changes to Tax Code in Trade Preferences Act
The Trade Preferences Extension Act of 2015 contains tax provisions in addition to the trade measures that were the focus of the bill.
Supreme Court Upholds Health Insurance Subsidies in Federal Exchanges
The Supreme Court upheld the availability of premium tax credits under Sec. 36B when they are provided through health exchanges run by the federal government.
IRS Issues Guidance for Multiemployer Plans to Apply For Benefit Suspension Approval
The IRS issued temporary and proposed regulations that provide guidance for multiemployer pension plans that are in critical and declining status and therefore may be permitted to suspend benefits under the Multiemployer Pension Reform Act of 2014.
Problems That Arise When Individuals on Overseas Assignments Participate in U.S. Qualified Plans
Issues can arise when employers let U.S. nationals and foreign nationals participate in U.S. qualified benefit plans when on overseas assignments.
To Be an Excepted Benefit, Wraparound Coverage Must Meet Five Requirements
The Departments of Health and Human Services, Labor, and Treasury issued final regulations permitting employers to offer limited wraparound coverage for health care if they meet five requirements.
2016 Inflation Adjustments for HSAs Released
The IRS issued the inflation-adjusted figures for calendar-year 2016 for the annual contribution limits for HSAs and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
Small Employers Get Relief From Sec. 4980D Penalty
The IRS announced transition relief from the application of the Sec. 4980D excise tax, which applies to health plans that do not meet the market reform requirements of the Patient Protection and Affordable Care Act
CHIP Buy-in Programs May Qualify as Minimum Essential Coverage
An individual who may enroll in a CHIP buy-in program that has been recognized as minimum essential coverage by HHS will be treated as eligible for minimum essential coverage under the program for purposes of the premium tax credit only for the period the individual is enrolled.
IRS Grants Penalty Relief to Taxpayers Who Received Incorrect Health Care Forms
To ease the filing burden for taxpayers who received late or incorrect Forms 1095-A, the IRS announced that it will provide penalty relief for taxpayers.
IRS Issues Additional PPACA Guidance on Identifying Full-Time Employees
The IRS provided employers with helpful guidance regarding situations where an employer changes the measurement period or method it uses for determining if a variable-hour or part-time employee has become a full-time employee.
The Exclusion for Meals and Lodging
This article explains the general exclusion under Sec. 119(a) and the other limited exclusions for meals and lodging received from an employer and addresses whether a partnership may treat a partner as an employee for purposes of the Sec. 119(a) exclusion.
IRS Will Waive Penalties for Underpayments Related to the Premium Tax Credit
IRS will provide automatic penalty relief for premium tax credit underpayments.
Regulations Will Allow Charter School Employees to Participate in Government Plans
The IRS announced that it will develop regulations under Sec. 414(d) that would permit a state or local retirement system that qualifies as a governmental plan to cover employees of charter schools.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
