IRS: Individual Mandate, Penalty Still On for 2014, But You Won’t Have to Pay

An Internal Revenue Service (IRS) official, testifying before the House Ways and Means Health Subcommittee yesterday, said that the Obamacare individual mandate and penalty for not purchasing health insurance are still on for 2014, but… “Individuals who can’t afford to pay that [the penalty] don’t have to pay it,” said Mark Iwry, the IRS representative. […]

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Final Regulations Issued on ACA Reporting for Large Firms

The Department of the Treasury and the Internal Revenue Service (IRS) have released final rules to implement the information reporting provisions for insurers and certain employers under the Affordable Care Act (ACA) that take effect in 2015. “Today’s announcement is part of the administration’s effort to provide certainty and early guidance about major health policies […]

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IRS Posts New Mileage Reimbursement Rates

The Internal Revenue Service (IRS) has announced mileage reimbursement rates for 2014, with two of them decreasing by a half-cent each. Beginning Jan. 1, 2014, employers using the standard IRS rates for mileage reimbursement should adhere to these standards: 56 cents per mile for business miles driven; 23.5 cents per mile driven for medical or […]

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Audit Shows IRS Obamacare System Open to Fraud

The Treasury Department's Inspector General (IG) for Tax Administration warns that the Internal Revenue Service (IRS) needs to act quickly to put controls in place to prevent fraud by taxpayers seeking refundable tax credits under the Affordable Care Act (ACA). "Without adequate fraud mitigation controls, the IRS may be unable to identify ACA refund fraud […]

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Does It Pay to Be an Unpaid Intern?

Evidently not, according to a survey conducted by the National Association of Colleges and Employers (NACE). Unpaid internships led to full-time jobs 36 percent of the time with a median starting salary of $35,721 a year, according to survey results. In contrast, new hires with no internship experience were awarded a slightly higher starting salary, […]

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Treasury, IRS Now Allow $500 Rollovers on FSAs

The Department of the Treasury and the IRS today issued a notice modifying the longstanding “use-or-lose” rule for health flexible spending arrangements (FSAs). To make health FSAs more consumer-friendly and provide added flexibility, the updated guidance permits employers to allow plan participants to carry over up to $500 of their unused health FSA balances remaining […]

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IRS Health Insurance Penalty Deadline Extended Six Weeks

Due to a conflict between the date that the Internal Revenue Service (IRS) said individuals must have health insurance or face a tax penalty and the date that the Marketplaces will cease selling coverage, the administration has pushed back the penalty date by six weeks. Both dates have now been set at March 31, 2014, […]

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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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