Menu

All News

Need Tax Assistance?

The IRS announced that it will not reject tax returns just because a taxpayer has not indicated on the return whether the taxpayer had health insurance, was exempt, or made a shared-responsibility payment under Sec. 5000A. The IRS disclosed the change on its webpage, ACA Information Center for Tax Professionals, in response to President Donald Trump’s Jan. 20 executive order mandating that federal agencies reduce the burden of the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148, on taxpayers.

Sec. 5000A, enacted as part of PPACA, requires taxpayers who do not maintain minimum essential health coverage for each month of the year and who do not qualify for an exemption to pay a shared-responsibility payment with the filing of their Form 1040, U.S. Individual Income Tax Return.

Although the health insurance information requirement for individual tax returns has been in effect for a few years, the IRS explained that in the past it has not rejected returns that did not contain the information. This year, it had put into place systems that were designed to reject returns that did not provide the information. As a result of the executive order, the IRS has suspended that practice and will allow returns without that information to be processed. The IRS also says it is studying the executive order to determine what other action it must take to comply.

As the IRS pointed out, the requirement for taxpayers to make shared-responsibility payments under PPACA if they do not have health insurance or an exemption is statutory and cannot be changed without legislation. Therefore, until legislation repealing the requirement is enacted, taxpayers who do not have insurance or an exemption must pay the shared-responsibility payment. The IRS suggested that, although it would process returns without the information or payments, it will nonetheless issue follow-up correspondence after it has completed processing the returns.

The IRS announcement came on the same day that the Department of Health and Human Services (HHS) issued a proposed rule (RIN 0938-AT14) that would, among other things, reduce the open enrollment period in the individual market on the Affordable Insurance Exchanges for the 2018 plan year (changing the closing date from Jan. 31, 2018, to Dec. 15, 2017); increase preenrollment verification of eligibility; and allow insurers to apply a premium payment to an individual’s debt for certain prior coverage. In the preamble to its proposed rules, HHS says the changes are designed to stabilize the individual and small group health insurance markets by helping the Affordable Insurance Exchanges attract and retain the “healthy consumers necessary to provide a stable risk pool that will support stable rates.”

If you would like more information about how the PPACA may affect your return, or need tax assistance, contact us today!

Contact Person Huff CPA Group

  • This field is for validation purposes and should be left unchanged.

IRS Confirms Six Month Extensions For Calendar-Year C Corps

February 13, 2017

The IRS has confirmed on its website that an apparent anomaly in recently posted form instructions is correct: It is allowing calendar-year C corporations a six-month filing extension, instead of the five-month extension specified in the Code. The instructions to Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, […]

Read the full article →

Some tax provisions expire at end of 2016

January 23, 2017

With the passage of the Protecting Americans From Tax Hikes (PATH) Act in December 2015 (part of the Consolidated Appropriations Act, 2016, P.L. 113-114), Congress took care of a large part of the problem of expired tax provisions. However, in the relief over the many extended provisions, which included such important items as the Sec. […]

Read the full article →

Louisiana State Income Tax Filing Begins Monday January 23

January 17, 2017

The Louisiana Department of Revenue (LDR) will begin accepting 2016 state individual income tax returns on Monday, January 23. Additionally the state individual income tax filing deadline is Monday, May 15. LDR begins this tax season with a focus on protecting taxpayers and state government against fraud. Over the past three years, LDR has saved […]

Read the full article →

Small Business Tax Deductions in 2017

January 5, 2017

In 2017, many small businesses are eligible for a bigger deduction on equipment purchases, and those that aren’t required to provide health insurance will have an option to help staffers pay for coverage. Additionally, many companies have new filing deadlines for their tax returns, and owners who use their cars for business will get a […]

Read the full article →

New Rules May Affect Your Businesses

December 7, 2016

New laws and regulations could have an impact on how you manage your business or your tax planning. Below is a summary of important developments you should be aware of: In a change from past rules, businesses must file all Forms W-2 and W-3 and some Forms 1099-MISC with the IRS and the Social Security […]

Read the full article →

Some Tax Refunds Will Be Delayed in 2017

November 29, 2016

As the holidays approach, the Internal Revenue Service today reminded taxpayers to remember that a new law requires the IRS to hold refunds until mid-February in 2017 for people claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). In addition, new identity theft and refund fraud safeguards put in place […]

Read the full article →

Congratulations Beth Goddard!

November 10, 2016

Beth Goddard is celebrating 10 years of service with Person Huff CPA Group! She provides accounting and tax services as well as computer technical support and training for individuals, small businesses, and non-profit organizations. She specializes in small business accounting software including Peachtree, QuickBooks, PCLaw, and Champion. She has been an officer in many non-profit […]

Read the full article →

PHISHING ALERT: Fake QuickBooks Email

November 10, 2016

Several of our staff members recently received emails that claimed to be from QuickBooks and wanted us to follow a sign-in link, presumably so that we could enter our credit card information to ‘subscribe’ to QuickBooks. The email was designed to look very genuine and as you can see by enlarging this image, many of […]

Read the full article →