Archive for the ‘IRS’ Category

The Internal Revenue Service (IRS) has issued proposed regulations for a new provision allowing many owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income. The new deduction — referred to as the Section 199A deduction or the deduction for qualified business income — was created by the Tax […]

Even as many applicable large employers (ALEs) grapple with Employer Shared Responsibility Penalty (ESRP) letters from 2015, the Internal Revenue Service (IRS) is preparing to issue more such letters — known as Letter 226-J — for 2015, with still more coming later this year for 2016. Still down the road later this year, the agency […]

The Internal Revenue Service (IRS) has begun issuing new Affordable Care Act (ACA) penalty notices for calendar year 2015. The notices are officially called Employer Shared Responsibility Payment (ESRP) notices, or what the IRS refers to as Letter 226-J. Under the ACA, Applicable Large Employers (ALEs), generally those companies with 50 or more full-time employees […]

The Internal Revenue Service has issued guidance that provides relief for certain small employers who wish to claim the Small Business Health Care Tax Credit for 2017 and later years but  whose businesses reside in counties with no Obamacare small business health insurance available. The Small Business Health Care Tax Credit can benefit certain small employers who […]

The Tax Cuts and Jobs Act of 2017 opened a two-year window, from Jan. 1 this year to Dec. 31, 2019, for qualifying companies to receive a tax credit if they offer paid Family and Medical Leave Act (FMLA) time off. This month the IRS issued a set of FAQs to help explain how the […]

The Internal Revenue Service has released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. […]

The IRS has extended by 30 days the deadline for providing Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to each employee. The new deadline is March 2, 2018, replacing the original Jan. 31 deadline. Form 1095-C affects Applicable Large Employers (ALEs), those with 50 or more employees, who are mandated to provide essential health benefits. […]

The individual mandate of the Affordable Care Act (ACA, aka Obamacare) may be expiring — in 2019 — but the employer mandate is alive and well, and companies were sent notices in November advising them of any violations and the consequent tax penalty due. According to the employer mandate provision, companies with 50 or more […]

President Trump may be beating the drum to end the Obamacare individual mandate with looming tax reform legislation (to little avail so far), but the Internal Revenue Service (IRS) is already gearing up to enforce both that mandate and the employer shared responsibility mandate for businesses with 50 or more employees. The agency announced it […]

The Internal Revenue Service (IRS) reports that 4 million Americans paid an average of $708 for not having health insurance in 2016 — what the IRS terms the Individual Shared Responsibility Payment (ISRP). The average is just over the base penalty of $695 imposed for a whole year without coverage. Interestingly, 22.6 million others filed for exemptions […]