The IRS ACA audit process forces employers to prove their case or face penalties

A few weeks after the national election, the Internal Revenue Service began to issue notices to employers who may have failed to comply with the Patient Protection and Affordable Care Act.

These notices appeared to be the first salvo in the IRS ACA audit process. Failure to successfully defend this IRS audit could mean significant ACA related penalties. A recent industry report projects that companies could face up to $31 billion in ACA penalties in the 2016 tax reporting period for noncompliance with ACA requirements. These penalties, which include the Section 4980H penalties and Section 6721 and 6722 penalties, may be imposed on what the ACA terms Applicable Large Employers, or ALEs, namely, those employers with 50 or more full time or full-time equivalent employees.


Married Taxpayers 101:

Taxpayers that are married may file a JOINT RETURN, therefore combining their INCOME and expenses. Individuals will be considered married if:
1. They are living as husband and wife;
2. They are recognized living as common law marriage; or
3. Legally married but separated and living apart but not legally divorced.
Marriage is determined as of the last day of the tax year.

Your Home Tax Deduction Checklist: Did You Get Them All?

Homeowners, get excited: It’s tax season, that magical time of year when having a house actually saves you money. But just know that taking advantage of all these tax breaks can be kind of complicated, especially if you’re used to filing a 1040EZ and calling it a day. For one, with a home, it usually makes sense to itemize your deductions rather than take the standard, so that means it’s really on you to know all the niggling things that make the cut. To help you make sure you aren’t missing anything, we’ve compiled this handy home tax deduction checklist. Don’t file that return until you’re sure you’ve got ’em all!


Inside the ACA replacement act

House Republicans released a bill, the American Health Care Act, on Monday night to begin making good on their promise to repeal and replace the Affordable Care Act.

The ACA repeal bill proposed in the House on Monday would immediately repeal the individual and employer mandates, and modifies the current premium tax credit for 2018 and 2019 before replacing it with a new tax credit in 2020, according to Nicole Elliot, former IRS senior director of operations for the Affordable Care Act and current partner with law firm Holland & Knight.


Non-Cash Income IRS Requires To Be Reported On Your Taxes

At tax time, it’s easy to remember your wages, since you receive a Form W-2. It’s also easy to remember income reported on Forms 1099. You probably get many Forms 1099, so don’t lose them. But what isn’t so clear is if you get income without cash, and it is more common than you might think. A variety of events can give you taxable income even though you’ve seen no cash. For example, consider constructive receipt. This tax rule requires you to pay tax when you have a right to payment even though you do not actually receive it.


IRS has $1B in unclaimed tax refunds waiting

The Internal Revenue Service said Wednesday it has a total of $1 billion worth of unclaimed tax refunds waiting for people who have not filed a 2013 income tax return.

The IRS estimates half the refunds are over $763, while the other half are less than that amount. Taxpayers can claim their refunds by filing a 2013 federal return by Tuesday, April 18, 2017, the filing deadline for this year.


3 Homeowner Tax Breaks That Ended in 2016—and May Not Come Back

Perhaps you didn’t realize it, but like the average house mouse, or your driver’s registration, many tax breaks have a life span of only one year. Technically, a lot of those tax credits and deductions expired on  Dec. 31, 2016—which means that if you’re a homeowner, you might want to lock in whatever home-related tax benefits you can when you file last year’s return.