Final regulations permit employers to offer limited wraparound coverage for health care if they meet five requirements.
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Employee Benefits
How to “Fix” an Employee Bonus Liability
This article discusses issues related to bonus liabilities of employers on the accrual method of accounting, when the bonuses are paid after the tax year in which the related services are performed by the eligible employee(s) but within 2½ months after the year end.
Taxpayers Who Already Filed 2014 Returns Using Incorrect Forms 1095-A Won’t Have To Pay More Tax
The Treasury Department announced on Tuesday that taxpayers do not have to file amended returns if they already filed their 2014 tax returns relying on forms sent by the government that contained incorrect information about their health coverage and any advance premium tax credit they received.
IRS Asks for Comments on Proposed Rules for High-Cost Health Plans
To prepare for the new excise tax on so-called Cadillac high-cost health insurance plans, the IRS is asking for comments on proposed approaches to creating guidance on issues involving the tax when it becomes effective in 2018.
Thousands Receive Incorrect Health Care Tax Forms; Signup Period Extended
The government announced that many taxpayers who signed up for health insurance on the site have received an incorrect Form 1095-A for 2014. It also announced an extension of time for uninsured taxpayers to sign up for insurance on the website.
Sec. 4980D Excise Tax Relief Is Available for Certain Small Employers
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.
Do PPACA Credits and Mandates Apply in States With Federal Exchanges?
Challenges now moving through the federal courts target the IRS’s interpretation that the Sec. 36B premium assistance credit to insurance purchased on both state health insurance exchanges and federal health insurance exchanges.
How the New One-a-Year IRA Rollover Rule Applies
The IRS clarified how the change in the way it interprets the statutory one-rollover-per-year rule for individual retirement arrangements affected 2014 rollovers and how the rules apply in 2015.
Guidance on Health Care Law Is Issued
The IRS released a package of guidance on 2010’s health care reform legislation, finalizing proposed regulations on minimum essential coverage, identifying the hardship exemptions from the Sec. 5000A individual shared-responsibility penalty for which individuals are not required to provide exemption certificates, and providing indexing adjustments for certain calculations under the Sec. 36B premium tax credit and Sec. 5000A
IRS Updates Its Rules for Qualified Transportation Fringe Benefits
In response to changes in the availability of electronic payment media on transit systems, the IRS announced that, beginning after Dec. 31, 2015, employers will no longer be permitted to provide qualified transportation fringe benefits in the form of cash reimbursement in geographic areas where terminal-restricted debit cards are readily available. After that date, the IRS will no longer permit employers to use cash reimbursement if the only available voucher or similar item exchangeable for a transit pass is a terminal-restricted debit card.
Taxpayers Get Penalty Relief for Incorrect Premium Tax Credit Advance Payments
The IRS will provide automatic penalty relief for taxpayers who, when they reconcile advance payments of the premium tax credit they received for 2014 to the amount of the credit they are entitled to on their income tax returns, find they owe additional tax.
Charter Schools to Be Allowed to Participate in Government Retirement 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.
Government to Reach Out, Provide Resources to Ease Health Care Tax Filing Burden
Taxpayers who are faced for the first time this tax season with complying with the health care law provisions will be able to get help from the government, the secretaries of the Treasury and of Health and Human Services announced.
IRS Issues Procedures for Reinstated Transit Benefits Parity
The IRS issued procedures for employers to use to handle the retroactive application of the increased amount of the 2014 income exclusion for monthly transit benefits.
IRS Releases Regulations Related to Hybrid Pension Plans
The IRS issued long-awaited final regulations related to hybrid pension plans. While the final regulations formalize guidance in some areas, the IRS also released for public comment new proposed regulations related to additional topics not fully addressed in the final regulations.
IRS Issues Final Regulations on Sec. 162(m)(6) Deduction Disallowance
The IRS issued final regulations under Sec. 162(m)(6), which imposes a $500,000 federal income tax deduction limitation for compensation paid by a covered health insurance provider.
IRS Provides Guidance on Implementing Pension Funding Relief Rules
The IRS released guidance on implementing the defined benefit pension relief provisions included in the Highway and Transportation Funding Act of 2014.
IRS Signals PPACA Compliance Issues
In September 2014, the IRS made several updates to the Internal Revenue Manual that provide insight on the notices and enforcement methods the Service will use this tax season to ensure taxpayers comply with the Patient Protection and Affordable Care Act.
IRS Finalizes Regulations on Use of QLACs
New IRS rules provide that longevity annuity payments will not be required to begin prematurely, thus adding flexibility to retirement planning and helping to protect individuals from outliving their savings.
Deferred Annuities in Defined Contribution Plans Can Be Offered to Older Participants
Qualified defined contribution plans will be allowed to provide lifetime income to plan participants by offering funds including deferred annuities among their assets, even if some of the funds are available only to older plan participants.
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.
