Tax Enforcement Continues to Decline
In a recent Treasury Inspector General for Tax Administration (TIGTA) report, the Inspector General found that a recent decrease in revenue agents and tax compliance officers contributed to a decrease in examinations overall. Although a greater number of partnership and corporation tax returns were examined, fewer individual tax returns were reviewed during 2011 and 2012. Citing challenges that include approximately 50 provisions in the Affordable Care Act that add to or amend the Internal Revenue Code, a decrease in the number of field agents, and continued funding decreases, fewer hours are available for enforcement. The report indicated better collections procedures resulting in increased cash flow on existing tax debts, but also noted that the amount owed in aggregate has grown 46% in the past five years. No recommendations were made with the report, and IRS officials did not provide any comments on it after having the opportunity to review the draft.
No Fine or Penalty for Failure to Provide Notice of Coverage Options to Employees by Oct. 1, 2013
The Department of Labor recently notified employers, who were to be fined for not providing information to employees regarding the Health Insurance Marketplace by October 1, 2013, that the fine is being delayed and will not be effective for 2013. This is another in a series of delays in the implementation of the Healthcare law.
Ohio Provides Guidance On 2013 Tax Reform
Ohio’s Tax Department recently created an information page dedicated to the 2013 tax reform (see previous July 9, 2013 post on the subject). It offers clarification on many of the law changes and how they will impact 2013 tax filings.
Their website now includes a FAQ section on the topic, as well as updated payroll withholding tables and information regarding sales tax rate change effective 9/1/13.
Changes To Employer Health Insurance Premium Credit Are Coming
The IRS recently issued new proposed regulations regarding the tax credit for employers that offer health insurance coverage to their employees for tax years 2014 and later. The key items changing in the credit include a new requirement that the insurance be purchased through the Small Business Health Options Program (SHOP) exchange and a two-year limit on claiming the credit. The proposed regulations can be read here and an article explaining details on the changes here.
Effective Dates of Provisions in Health Care Law Postponed Until 2015
The IRS recently announced that certain provisions of the health care law, namely the large-employer health care penalty and information reporting aspects of IRC’s 6055 and 6056, are postponed from their original 2014 effective dates to 2015. The postponed items impose penalties on qualified employers that do not offer minimum medical insurance coverage to their employees. The Treasury advises companies that will be subject to the law when effective in 2015 to begin implementing the rules regardless of the postponed effective date so they are prepared when it is time. Read more here.
2013 Home Office Deduction YouTube Update
Julianne at the IRS recently posted this new YouTube video explaining the new Home Office deduction option.
