2016 Tax Year-In-Review

Posted on January 2, 2016

2016 began and ended with the promise of comprehensive tax reform. The election of Donald Trump as the 45th President of the United States appears to make tax reform likely in 2017.  At the same time, legislation, court decisions and IRS determinations issued in 2016 will impact 2017 and beyond. During 2016, the IRS issued regulations on a number of far-reaching subjects, including corporate taxation, international taxation, individual taxation, health care, and more. Congress also passed several targeted tax laws. Looking ahead, 2017 is almost certain to be a pivotal year for taxes and tax planning.

Read more here.

Tax Extenders Package Makes Many Provisions Permanent

Posted on December 29, 2015

Just before recessing for the holidays, the House and Senate passed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). President Obama signed the Act and a FY 2016 omnibus on December 18. The Act does considerably more than the typical tax extenders legislation seen in prior years. It makes permanent over 20 key tax provisions, including the research tax credit, enhanced Code Sec. 179 expensing, and the American Opportunity Tax Credit. It also extends other provisions, including bonus depreciation, for five years; and revives many others for two years. In addition, many extenders have been enhanced. Further, the Act imposes a two-year moratorium on the ACA medical device excise tax. The House passed the Act on December 17 by a vote of 318-109; The Senate approved the Act along with the FY 2016 omnibus on December 18 by a vote of 65 to 33.

Read the full coverage here.

For more information, contact Mike Vogel, CPA, Mike Cameron, CPA or John Rittichier, CPA at 800-880-7800.

IRS Provides a Significant Break for Small Businesses

KEY TAKEAWAY: Taxpayers without an Applicable Financial Statement are now granted a de minimis safe harbor expensing election of $2,500, up from $500.

Effective for tax years beginning on or after January 1, 2014, the IRS has issued significant final regulations relating to tangible assets, materials and supplies, and related repairs and maintenance items. As part of these Tangible Asset Regulations (“TARS”), a de minimis safe harbor was implemented to allow taxpayers to expense units of property that are below certain thresholds that would otherwise be subject to capitalization. Continue reading “IRS Provides a Significant Break for Small Businesses” →

IRS Extends due dates for ACA reporting (Forms 1094 and 1095 B & C)

Posted on December 29, 2015

On December 28, 2015, IRS issued Notice 2016-4, which extends the due dates for the 2015 information reporting requirements, both furnishing to individuals and filing with the Internal Revenue Service (Service), for insurers, self-insuring employers, and certain other providers of minimum essential coverage under I.R.C. § 6055, and the information reporting requirements for applicable large employers under I.R.C. § 6056.

Specifically, this Notice (1) extends the due date for furnishing the 2015 Form 1095-B, Health Coverage, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2016, until March 31, 2016, and (2) extends the due date for filing with the Service the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, the 2015 Form 1095-B, Health Coverage, the 2015 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage from February 29, 2016, to May 31, 2016 if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

This Notice also provides guidance to individuals who, as a result of these extensions, might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns.