On Jan. 20, 2017, an executive order signed by newly elected president Donald Trump directed federal agencies to exercise authority and discretion available to them to reduce potential burden of the ACA.
On February 15, 2017, the IRS released the following statement regarding the Annual Shared Responsibility Payment: "The IRS is currently reviewing the Jan. 20, 2017, executive order to determine the implications. Taxpayers should continue to file their tax returns as they normally would."
On February 3, 2017, the IRS disabled the e-file error (business rules IND 069 and IND 070) related to the Annual Shared Responsibility Payment and will currently accept an e-filed return that leaves the box unchecked.
Current legislative provisions of the ACA law are still in force, and taxpayers remain required to follow the law and pay what they may owe.
However, the IRS has made it possible for taxpayers to decline to answer the question, and will accept a taxpayer's efiled return without the Health Coverage question checked. We anticipate more guidance soon, and many taxpayers have opted to extend their federal returns in order to see if the ACA penalty is removed this year (it's a very high penalty this year, and can be total $2,000 for some families without qualifying coverage).
Considering that many families cannot afford qualifying coverage, this is a boon for taxpayers who cannot afford the average 12-15K per year for family coverage. (most family coverage exceeds a taxpayer's average housing cost in California).
It seems like the IRS has decided to follow the president's executive order. As a tax professional, What would you do?
C Corp extension date has been updated! The instructions for IRS Form 7004 were updated February 2, 2017. The IRS decided to grant a full 6-month extension for calendar-year C corporations, under the authority of Code Sec. 6081(a) instead of the five months as stated in IRC Sect. 6081(b) that we were all expecting.A lot of tax pro websites are still reflecting the old deadline. Take note, tax pros!
Enrolled Agents: Did you accidentally miss the mandatory EA renewal period? HURRY! You still have time to fix it!
The 2017 IRS nrollment Renewal Application Period is open from November 1, 2016 through January 31, 2017. EAs whose SSN ends in 4, 5, or 6 are required to renew during this period. Without renewal your current enrollment will expire on March 31, 2017.
You may submit your enrollment renewal application and payment directly online through PAY.GOV. https://www.pay.gov/public/home
Date: Thursday, February 16, 2017
Time: TWO Start Times Available…
Session 1: 11:00 a.m. Eastern; 10:00 a.m. Central; 9:00 a.m. Mountain; 8:00 a.m. Pacific
Session 2: 2:00 p.m. Eastern; 1:00 p.m. Central; 12:00 p.m. Mountain; 11:00 a.m. Pacific
Length: 60 minutes (including Q & A)
Get the answers you need to report and succeed…
This web conference will provide an overview of the following:
What is the Sharing Economy?
CPE: Earn 1 CE Credit – Category: Federal Tax ***
*** You may only earn credit for participating in ONE of the web conferences.
PTIN Holders: In order to get your CE reported to the IRS, ensure that your first name, last name and PTIN match your account. Your PTIN must begin with the letter P followed by 8 numeric characters. If your name and PTIN are incorrectly entered, you may still receive a certificate but your credit will not be reported to the IRS.
Register and Attend:
Session 1: https://www.webcaster4.com/Webcast/Page/1148/18972
Session 2: https://www.webcaster4.com/Webcast/Page/1148/18986
Closed captioning offered for the Session 2 web conference ONLY.
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