The IRS issued interim guidance September 29 on the child adoption credit and income exclusion for employer reimbursements of adoption expenses, as expanded by the Patient Protection and Affordable Care Act.
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Employee Benefits
Draft Form 8941 Health Insurance Credit for Small Businesses
The IRS issued a draft form for businesses to use in figuring and claiming the new small business health insurance credit.
Health Care Legislation Requires New Planning Strategies
Two areas that practitioners should examine for opportunities to reduce the impact of Medicare tax increases on their clients are the structure of privately owned businesses and holdings in passive investment activities.
Act Provides Temporary Funding Relief for Pension Plans
The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act allows single-employer plans to elect to amortize over a longer period pension shortfalls caused by losses in asset value they experienced in 2008.
Health Care Appeals and Review Regulations Issued
The IRS and the Departments of Labor (DOL) and Health and Human Services issued interim final regulations and proposed regulations governing how individuals can appeal medical coverage or claims denials by their health insurer.
Regulations Issued on Preventive Services
The IRS and the Departments of Labor and Health and Human Services have issued interim final regulations that implement the recent health care reform legislation’s rules requiring insurers to cover various preventive health services.
IRS Releases Average Premiums for Determining Small Business Health Care Credit
On May 3, the IRS issued average small group market premiums for use in determining the new small business health care credit under Sec. 45R (Rev. Rul. 2010-13).
Substantially Equal Payment Exception
One of the most useful exceptions to the early distribution tax (particularly for IRA distributions before the taxpayer is age 59½) is the exception for substantially equal payments.
President Signs Bill Providing Temporary Funding Relief for Pension Plans
President Barack Obama signed HR 3962, the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010. The bill includes the so-called “doc fix,” increasing Medicare reimbursement to physicians by 2.2% through the end of November, in place of a scheduled 21% cut.
Health Care Regulations Issued
The IRS and Treasury Department issued proposed regulations further implementing provisions of the recent health care legislation concerning pre-existing conditions, annual benefit limits and coverage rescissions.
Regulations Issued on Grandfathered Health Plans
The IRS, the Department of Labor, and the Department of Health and Human Services issued interim final regulations on June 14 regarding grandfathered health plans under the health reform legislation enacted in March
IRS Publishes FAQs on Small Business Health Care Credit
On April 1, the IRS published on its website 22 questions and answers about the new small business health care tax credit.
IRS Guidance on Small Business Health Care Tax Credit
On May 17, the IRS issued a notice providing guidance to small businesses that are eligible to claim a tax credit for employee health insurance coverage.
Average Premiums for Determining Small Business Health Care Credit Released by IRS
The IRS issued average small group market premiums for use in determining the new small business health care credit under Sec. 45R.
Deduction for Bonuses Deferred Due to Employment Contingency
The IRS Office of Chief Counsel has concluded that a liability arising from bonus compensation is deductible in the year the bonus is paid if payment of the bonus is contingent on the taxpayer’s employees being employed on the payout date.
Health Care Reform Adds New Taxes
The Patient Protection and Affordable Care Act (the Patient Protection Act) and the Health Care and Education Reconciliation Act of 2010 (the Reconciliation Act) add a number of new taxes and make various other revenue-increasing changes to the Code in order to help finance health care reform.
Using a Qualified Plan Account to Fund a Roth IRA Conversion
Recent tax law changes expand the Roth IRA to all taxpayers who have or could have traditional IRA accounts. Determining whether a Roth conversion is the right strategy takes thoughtful consideration.
Notice 2010-6: Sec. 409A Document Failure Correction Program
The IRS has provided methods for taxpayers to voluntarily correct certain types of failures to comply with the document requirements of Sec. 409A.
Obtaining Tax Benefits with Health Savings Accounts
The Medicare Prescription drug and Modernization Act established health savings accounts (HSAs), which are aimed primarily at self-employed taxpayers, small business owners, and employees of small to medium-sized firms. Eligible individuals can make tax-deductible contributions into HSA accounts. The earnings inside the HSA are free from federal income tax, and funds can be withdrawn tax free to pay health care costs.
Deadline Extended for Retirement Plan Amendments to Conform to Recent Laws
The IRS has extended by one year the deadline for retirement plans to make amendments required by the Pension Protection Act and last year’s Worker, Retiree, and Employer Recovery Act (Notice 2009-97).
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.
