IRS Issues Guidance on Refunds for Prior Same-Sex Spouse Benefit Taxes

Following the Supreme Court decision invalidating Section 3 of the Defense of Marriage Act (DOMA), the Internal Revenue Service (IRS) issued a ruling that legally married same-sex couples are now entitled to the tax benefits long accorded legally married opposite-sex couples. The IRS has subsequently issued guidance granting refunds for any taxes paid prior to […]

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‘Christmas in July’ Spending Intensifies as FY 2013 Nears End

Federal agencies, though with reduced budgets because of the sequestration that kicked in at the start of the calendar year, are still rushing to spend every allocated penny before the close of the federal fiscal year on Sept. 30. The spending is part of a Washington routine known as "Christmas in July" as federal agencies […]

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IRS Recognizes Same-Sex Spouses for Tax Purposes

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does […]

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IRS Issues Final Regs on Penalties for Not Buying Insurance Under Obamacare

The Internal Revenue Service (IRS) yesterday issued final regulations regarding penalties under the Affordable Care Act (ACA) for those who fail to maintain "minimum essential coverage." Those who fail to maintain minimum essential health insurance coverage in 2014 will pay a fine of $95 or 1 percent of houshold income, whichever is larger. The fine […]

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Government Issues Final Rules on Employment-Based Wellness Programs

The U.S. Departments of Health and Human Services, Labor and the Treasury have issued final rules on employment-based wellness programs. The final rules support workplace health promotion and prevention as a means to reduce the burden of chronic illness, improve health and limit growth of health care costs, while ensuring that individuals are protected from […]

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IRS Relaxes Rules for Worker Misclassification Program

Started in 2011 and ending on July 30 of this year, the worker misclassification forgiveness program run by the Internal Revenue Service (IRS) just relaxed its entry rules. The program is designed to allow employers to fess up to misclassifying employees as independent contractors and also failing to issue 1099s for them. Accepted employers can […]

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New Health Care Taxes Take Effect

Most Americans may have avoided the so-called "fiscal cliff" that would've plunged them into higher tax brackets, but at the dawn of the New Year, two health care levies took hold that could affect a lot of taxpayers. First, a new 3.8 percent Net Investment Income Tax now applies to individuals, estates and trusts that […]

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IRS Releases EITC Amounts and Form for 2013

The Internal Revenue Service (IRS) has released updated 2013 Earned Income Tax Credit (EITC) amounts and a new Notice 797. Individuals will now qualify for EITC on their 2012 tax return if they: ♦ earned under $45,060 and have three or more qualifying children ($50,270 if married filing jointly) ♦ earned under $41,952 and have […]

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401(k) Contribution Limit to Rise in 2013 to $17,500

The Internal Revenue Service (IRS) has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2013. In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged […]

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IRS Issues Guidance on Additional Medicare Tax Kicking in Next Year

The Internal Revenue Service (IRS) has issued guidance on the additional 0.9 percent Medicare tax on highly compensated individuals that commences on Jan. 1, 2013. The tax is part of the Patient Protection and Affordable Care Act (PPACA), or what is commonly referred to as Obamacare. The guidance indicates that the additional tax kicks in […]

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