In August 2013, the IRS issued Rev. Proc. 2013-30 that consolidates and simplifies rules provided previously.
Taxpayers now have 3 years and 75 days from the date the S-election was originally intended to be effective to file a late S-election. No use user fee will apply. The election will be effective as of that intended date.
No! Each year, the IRS sends millions of letters and notices to taxpayers for a variety of reasons. Many can be dealt with simply and painlessly. Here are some tips:
There is no doubt that the Affordable Care Act is complex! Below is a list of terms that can assist you in determining how this new law affects you!
Individual Shared Responsibility Penalty Beginning in 2014, individuals without minimum essential coverage for themselves and their dependents will be subject to a penalty. The penalty is the larger of a base amount ($95 per person up to 3 persons for 2014, $325 per person for 2015, and $975 per person for 2016 and after) or a percentage of household income (1% for 2014, 2% for 2015, and 2.5% for 2016 and after).
The Affordable Care Act (ACA) defines a full-time employee as one that works at least 30 hours per week or 130 hours per month for any calendar month. The Full-Time Equivalent Value is determined by dividing the total monthly hours of all other employees by 120. Why are these terms important?
Under the ACA, beginning in 2015, employers with more than 100 full-time equivalent employees (FTEs) must provide affordable health coverage that provides a minimum level of coverage to at least 70% of their FTEs and their dependents or be subject to an Employer Shared Responsibility penalty.
After you file your taxes, you’ll have many records that may help document items on your tax return. You’ll need these documents should the IRS select your return for examination. Generally, this means you must keep records that support items shown on your return until the statute of limitations for that return runs out.