Category: TRANSLATION SERVICE FROM GOVERNMENT SPEAK TO BE UNDERSTANDABLE TO THE AVERAGE TAXPAYER


Adobe Acrobat PDF file formatted version for Printing and File Storage
tax-newsletter-february-2017-printable-pdf-version-rlc-02-15-17

 

                  Income Tax Newsletter

February 2017 rlc-smileytjb_-01-10-17_biz_-linkedin-photo-rlc-01-25-17

from Rex Crandell’s Tax Office

Walnut Creek and San Francisco.

 February 2017

 

Who Should File a 2016 Tax Return?

Most people file a tax return because they have to, but even if you don’t, there are times when you should–because you might be eligible for a tax refund and not know it. The six tax tips below should help you determine whether you’re one of them.

  1. General Filing Rules. Whether you need to file a tax return this year depends on several factors. In most cases, the amount of your income, your filing status, and your age determine whether you must file a tax return. For example, if you’re single and 28 years old you must file if your income, was at least $10,350. Other rules may apply if you’re self-employed or if you’re a dependent of another person. There are also other cases when you must file. If you have any questions, don’t hesitate to call.
  2. Premium Tax Credit.If you bought health insurance through the Health Insurance Marketplace in 2016, you might be eligible for the Premium Tax Credit; however, you will need to file a return to claim the credit.

If you purchased coverage from the Marketplace in 2016 and chose to have advance payments of the premium tax credit sent directly to your insurer during the year, you must file a federal tax return. You will reconcile any advance payments with the allowable premium tax credit.

You should have received Form 1095-A, Health Insurance Marketplace Statement, by early February. The new form has information that helps you file your tax return and reconcile any advance payments with the allowable Premium Tax Credit.

  1. Tax Withheld or Paid. Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.
  2. Earned Income Tax Credit. Did you work and earn less than $53,505 last year? You could receive EITC as a tax refund if you qualify with or without a qualifying child. You may be eligible for up to $6,269. If you qualify, file a tax return to claim it.
  3. Additional Child Tax Credit. Do you have at least one child that qualifies for the Child Tax Credit? If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit.
  4. American Opportunity Credit.The AOTC (up to $2,500 per eligible student) is available for four years of post-secondary education. You or your dependent must have been a student enrolled at least half-time for at least one academic period. Even if you don’t owe any taxes, you still may qualify; however, you must complete Form 8863, Education Credits, and file a return to claim the credit.

Which Tax Form is Right for You?

You can generally use Form 1040EZ if:

  • Your taxable income is below $100,000;
  • Your filing status is single or married filing jointly;
  • You don’t claim dependents; and
  • Your interest income is $1,500 or less.

Note: You can’t use Form 1040EZ to claim the new Premium Tax Credit. You also can’t use this form if you received advance payments of this credit in 2016.

Form 1040A may be best for you if:

  • Your taxable income is below $100,000;
  • You have capital gain distributions;
  • You claim certain tax credits; and
  • You claim adjustments to income for IRA contributions and student loan interest.

You must use Form 1040 if:

  • Your taxable income is $100,000 or more;
  • You claim itemized deductions;
  • You report self-employment income; or
  • You report income from sale of a property.

Questions?

Help is just a phone call away. Call or make an appointment today and get the answers you need right now.

 

IRS Tax Scams 2017: FAQs

As tax season approaches, taxpayers are reminded to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud. Every year scam artists look for new ways to trick taxpayers out of their hard-earned money, sensitive financial information or even access to their computers. It seems that no matter how careful you are there’s always a possibility that identity thieves could steal your personal information and try to cash in by filing fraudulent tax returns in your name.

Here’s what you need to know this year:

Which tax scams should I be on the lookout for this tax season?

This tax season some of the most prevalent IRS-impersonation scams include:

Requesting fake tax payments: The IRS has seen automated calls where scammers leave urgent callback requests telling taxpayers to call back to settle their “tax bill.” These fake calls generally claim to be the last warning before legal action is taken. Taxpayers may also receive live calls from IRS impersonators. They may demand payments on prepaid debit cards, iTunes and other gift cards or wire transfer. The IRS reminds taxpayers that any request to settle a tax bill using any of these payment methods is a clear indication of a scam.

Targeting students and parents and demanding payment for a fake “Federal Student Tax”: Telephone scammers are targeting students and parents demanding payments for fictitious taxes, such as the “Federal Student Tax.” If the person does not comply, the scammer becomes aggressive and threatens to report the student to the police to be arrested.

Sending a fraudulent IRS bill for tax year 2015 related to the Affordable Care Act: The IRS has received numerous reports around the country of scammers sending a fraudulent version of CP2000 notices for tax year 2015. Generally, the scam involves an email or letter that includes the fake CP2000. The fraudulent notice includes a payment request that taxpayers mail a check made out to “I.R.S.” to the “Austin Processing Center” at a Post Office Box address.

Soliciting W-2 information from payroll and human resources professionals: Payroll and human resources professionals should be aware of phishing email schemes that pretend to be from company executives and request personal information on employees. The email contains the actual name of the company chief executive officer. In this scam, the “CEO” sends an email to a company payroll office employee and requests a list of employees and financial and personal information including Social Security numbers (SSN).

Imitating software providers to trick tax professionals: Tax professionals may receive emails pretending to be from tax software companies. The email scheme requests the recipient to download and install an important software update via a link included in the e-mail. Upon completion, tax professionals believe they have downloaded a software update when in fact they have loaded a program designed to track the tax professional’s keystrokes, which is a common tactic used by cyber thieves to steal login information, passwords and other sensitive data.

“Verifying” tax return information over the phone: Scam artists call saying they have your tax return, and they just need to verify a few details to process your return. The scam tries to get you to give up personal information such as a Social Security number (SSN) or personal financial information, including bank numbers or credit cards.

Pretending to be from the tax preparation industry: The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails or text messages can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

What are the signs of identity theft?

Here are six signs that could indicate that you may be a victim of tax-related identity theft:

  1. Your attempt to file your tax return electronically is rejected. You get a message saying a return with a duplicate Social Security number has been filed. First, check to make sure you did not transpose any numbers. Also, make sure one of your dependents, for example, your college-age child, did not file a tax return and claim themselves. If your information is accurate, and you still can’t successfully e-file because of a duplicate SSN, you may be a victim of identity theft. You should complete Form 14039, Identity Theft Affidavit. Attach it to the top of a paper tax return and mail to the IRS.
  2. You receive a letter from the IRS asking you to verify whether you sent a tax return bearing your name and SSN. The IRS holds suspicious tax returns and sends taxpayers letters to verify them. If you did not file the tax return, follow the instructions in the IRS letter immediately.
  3. You receive income information at tax time from an employer unknown to you. Employment-related identity theft involves the use of your SSN by someone, generally an undocumented worker, for employment purposes only.
  4. You receive a tax refund that you did not request. You may receive a paper refund check by mail that the thief intended to have sent elsewhere. If you receive a tax refund you did not request, return it to the IRS. Write “VOID” in the endorsement section, and include a note on why you are returning it. If it is a direct deposit refund that you did not request, contact your bank and ask them to return it to the IRS.
  5. You receive a tax transcript by mail that you did not request. Identity thieves sometimes try to test the validity of the personal data they have chosen, or they attempt to use your data to steal even more information. If you receive a tax transcript in the mail and you did not request it, be alert to the possibility of identity theft.
  6. You receive a reloadable, prepaid debit card in the mail that you did not request. Identity thieves sometimes use your name and address to create an account for a reloadable prepaid debit card that they use for various schemes, including tax-related identity theft.

What are tax preparers and other tax professionals doing to protect my financial data?

Unfortunately, tax professionals are increasingly targets of cyber criminals seeking access to client data now as well. Criminals use this stolen information to file fraudulent tax returns for refunds; however, tax preparers and other tax professionals are able to protect their clients–and themselves in the event of a data breach by implementing critical steps such as:

Contacting the IRS and law enforcement:

Report client data theft to your local IRS Stakeholder Liaison. Liaisons will notify IRS Criminal Investigation and others within the agency on your behalf. Speed is critical. If reported quickly, the IRS can take steps to block fraudulent returns in your clients’ names. Contact local police to file a police report on the data breach, as well as the local FBI office and Secret Service (if directed).

Contacting states in which you prepare state returns:

Contacting the tax agency in each state in which you prepare returnsContact the State Attorneys General in each state in which you prepare returns. Most states require that the attorney general is notified of data breaches. This notification process may involve multiple offices.

Contacting experts:

Security experts can determine the cause and scope of the breach, what to do to stop the breach and prevent further breaches from occurring. A data breach should also be reported to your insurance company to determine if your insurance policy covers data breach mitigation expenses.

Contacting clients and other services:

  • The Federal Trade Commission offers tips and templates for businesses that suffer data compromise, including suggested language for informing clients.
  • Send an individual letter to any clients who have been a victim of a data breach to inform them of the breach but work with law enforcement on timing. Remember that you may need to contact former clients if their prior year data was still in your system.
  • Notify your tax software provider who may need to take steps to prevent inappropriate use of your account for e-filing.
  • It’s possible that your firm and client passwords may have been compromised and need to be reset, so it’s important to contact your website and/or client portal provider(s).
  • The Federal Trade Commission offers tips and templates for businesses that suffer data compromise, including suggested language for informing clients.
  • If required, notify a credit and/or ID theft protection agency. Certain states require offering credit monitoring and ID theft protection to victims of ID theft.
  • Notify credit bureaus if there is a compromise. Clients may seek their services.

What should I do if I’ve received a suspicious phone call or email from someone claiming to be from the IRS?

If you receive an unexpected call, unsolicited email, letter or text message from someone claiming to be from the IRS, be advised that the IRS will never:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer or initiate contact by email or text message. Generally, the IRS will first mail you a bill if you owe any taxes.
  • Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
  • Ask for credit or debit card numbers over the phone.

If you get a suspicious phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:

  • Do not give out any information. Hang up immediately.
  • Search the web for telephone numbers scammers leave in your voicemail asking you to call back. Some of the phone numbers may be published online and linked to criminal activity.
  • Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page or call 800-366-4484.
  • Report it to the Federal Trade Commission. Use the FTC Complaint Assistant on FTC.gov. Please add “IRS Telephone Scam” in the notes.
  • If you think you might owe taxes, call the IRS directly at 800-829-1040.

If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.

If you have any questions or believe that you’ve been a victim of an IRS tax scam, don’t hesitate to call.

 

Five Ways to Improve your Financial Situation

If you are having trouble paying your debts, it is important to take action sooner rather than later. Doing nothing leads to much larger problems in the future, whether it’s a bad credit record or bankruptcy resulting in the loss of assets and even your home. If you’re in financial trouble, then here are some steps to take to avoid financial ruin in the future.

If you’ve accumulated a large amount of debt and are having difficulty paying your bills each month, now is the time to take action–before the bill collectors start calling.

  1. Review each debt.Make sure that the debt creditors claim you owe is really what you owe and that the amount is correct. If you dispute a debt, first contact the creditor directly to resolve your questions. If you still have questions about the debt, contact your state or local consumer protection office or, in cases of serious creditor abuse, your state Attorney General.
  2. Contact your creditors.Let your creditors know you are having difficulty making your payments. Tell them why you are having trouble, perhaps it is because you recently lost your job or have unexpected medical bills. Try to work out an acceptable payment schedule with your creditors. Most are willing to work with you and will appreciate your honesty and forthrightness.

Tip: Most automobile financing agreements permit your creditor to repossess your car any time you are in default, with no advance notice. If your car is repossessed you may have to pay the full balance due on the loan, as well as towing and storage costs, to get it back. Do not wait until you are in default. Try to solve the problem with your creditor when you realize you will not be able to meet your payments. It may be better to sell the car yourself and pay off your debt than to incur the added costs of repossession.

  1. Budget your expenses.Create a spending plan that allows you to reduce your debts. Itemize your necessary expenses (such as housing and healthcare) and optional expenses (such as entertainment and vacation travel). Stick to the plan.
  2. Try to reduce your expenses.Cut out any unnecessary spending such as eating out and purchasing expensive entertainment. Consider taking public transportation or using a car sharing service rather than owning a car. Clip coupons, purchase generic products at the supermarket and avoid impulse purchases. Above all, stop incurring new debt. Leave your credit cards at home. Pay for all purchases in cash or use a debit card instead of a credit card.
  3. Pay down and consolidate your debts.Withdrawing savings from low-interest accounts to settle high-rate loans or credit card debt usually makes sense. In addition, there are a number of ways to pay off high-interest loans, such as credit cards, by getting a refinancing or consolidation loan, such as a second mortgage.

Tip: Selling off a second car not only provides cash but also reduces insurance and other maintenance expenses.

Caution: Be wary of any loan consolidations or other refinancing that actually increase interest owed, or require payments of points or large fees.

Caution: Second mortgages greatly increase the risk that you may lose your home.

You can regain financial health if you act responsibly. But don’t wait until bankruptcy court is your only option. If you’re having financial troubles, don’t hesitate to call.

 

Claiming an Elderly Parent or Relative as a Dependent

Are you taking care of an elderly parent or relative? Whether it’s driving to doctor appointments, paying for nursing home care or medical expenses, or handling their personal finances, dealing with an elderly parent or relative can be emotionally and financially draining, especially when you are taking care of your own family as well.

Fortunately, there is some good news: You may be able to claim your elderly relative as a dependent come tax time, as long as you meet certain criteria. Here’s what you should know about claiming an elderly parent or relative as a dependent:

Who Qualifies as a Dependent?

The IRS defines a dependent as a qualifying child or relative. A qualifying relative can be your mother, father, grandparent, stepmother, stepfather, mother-in-law, or father-in-law, for example, and can be any age.

There are four tests that must be met in order for a person to be your qualifying relative: not a qualifying child test, member of household or relationship test, gross income test, and support test.

Not a Qualifying Child

Your parent (or relative) cannot be claimed as a qualifying child on anyone else’s tax return.

Residency

He or she must be U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico; however, a parent or relative doesn’t have to live with you in order to qualify as a dependent.

If your qualifying parent or relative does live with you, however, you may be able to deduct a percentage of your mortgage, utilities, and other expenses when you figure out the amount of money you contribute to his or her support.

Income

To qualify as a dependent, income cannot exceed the personal exemption amount, which in 2016 (and 2017) is $4,050. In addition, your parent or relative, if married, cannot file a joint tax return with his or her spouse unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid.

Support

You must provide more than half of a parent’s total support for the year such as costs for food, housing, medical care, transportation and other necessities.

Claiming the Dependent Care Credit

You may be able to claim the child and dependent care credit if you paid work-related expenses for the care of a qualifying individual. The credit is generally a percentage of the amount of work-related expenses you paid to a care provider for the care of a qualifying individual. The percentage depends on your adjusted gross income. Work-related expenses qualifying for the credit are those paid for the care of a qualifying individual to enable you to work or actively look for work.

In addition, expenses you paid for the care of a disabled dependent may also qualify for a medical deduction (see next section). If this is the case, you must choose to take either the itemized deduction or the dependent care credit. You cannot take both.

Claiming the Medical Deduction

If you claim the deduction for medical expenses, you still must provide more than half your parent’s support; however, your parent doesn’t have to meet the income test.

The deduction is limited to medical expenses that exceed 10 percent of your adjusted gross income (For tax years 2013-2106, this amount is 7.5 percent if either you or your spouse was born before January 2, 1949), and you can include your own unreimbursed medical expenses when calculating the total amount. If, for example, your parent is in a nursing home or assisted-living facility. Any medical expenses you paid on behalf of your parent are counted toward the 10 percent figure. Food or other amenities, however, are not considered medical expenses.

What if you share caregiving responsibilities?

If you share caregiving responsibilities with a sibling or other relative, only one of you–the one proving more than 50 percent of the support–can claim the dependent. Be sure to discuss who is going to claim the dependent in advance to avoid running into trouble with the IRS if both of you claim the dependent on your respective tax returns.

Sometimes, however, neither caregiver pays more than 50 percent. In that case, you’ll need to fill out IRS Form 2120, Multiple Support Declaration, as long as you and your sibling both provide at least 10 percent of the support towards taking care of your parent.

The tax rules for claiming an elderly parent or relative are complex. If you have any questions, help is just a phone call away.

 

Five Tax Breaks that Expired in 2016

Many tax provisions were made permanent with the passage of the PATH Act in late 2015, but more than 36 others expired at the end of 2016. Here are the five that are most likely to affect taxpayers like you.

  1. Mortgage Insurance Premiums
    Mortgage insurance premiums (PMI) are paid by homeowners with less than 20 percent equity in their homes. These premiums were deductible in tax years 2013, 2014, 2015, and once again in 2016. Mortgage interest deductions for taxpayers who itemize are not affected.
  2. Exclusion of Discharge of Principal Residence Indebtedness
    Typically, forgiven debt is considered taxable income in the eyes of the IRS; however, this tax provision was extended through 2016, allowing homeowners whose homes have been foreclosed on or subjected to short sale to exclude up to $2 million of canceled mortgage debt. Also included are taxpayers seeking debt modification on their home.
  3. Energy Efficient Improvements
    This tax break has been around for a while, but if you made your home more energy efficient in 2016, now is your last chance to take advantage of this tax credit on your tax return. The credit reduces your taxes as opposed to a deduction that reduces your taxable income and is 10 percent of the cost of building materials for items such as insulation, new water heaters, geothermal heat pumps, or a wood pellet stove.

Note: This tax is cumulative, so if you’ve taken the credit in any tax year since 2006, you will not be able to take the full $500 tax credit this year. If, for example, you took a credit of $300 in 2015, the maximum credit you could take this year is $200.

  1. Qualified Tuition and Expenses

The deduction for qualified tuition and fees, extended through 2016, is an above-the-line tax deduction, which means that you don’t have to itemize your deductions to claim the expense. Taxpayers with income of up to $130,000 (joint) or $65,000 (single) can claim a deduction for up to $4,000 in expenses. Taxpayers with income over $130,000 but under $160,000 (joint) and over $65,000 but under $80,000 (single) can take a deduction up to $2,000; however, taxpayers with income over those amounts are not eligible for the deduction.

Qualified education expenses are defined as tuition and related expenses required for enrollment or attendance at an eligible educational institution. Related expenses include student-activity fees and expenses for books, supplies, and equipment as required by the institution.

  1. Exemption from Increase in Medical Expense Threshold Amounts

Starting in 2013, threshold amounts for medical expense deductions increased from 7.5 percent to 10 percent of AGI. Seniors (age 65 during or before the tax year) were temporarily exempt from the 10 percent threshold of adjusted gross income (AGI), which applied to tax years starting after December 31, 2012 and and ending before January 1, 2017.

Don’t miss out on the tax breaks you are entitled to.

If you’re wondering whether you should be taking advantage of these and other tax credits and deductions, please call today.

 

2017 Tax Filing Season; Tax Returns due April 18

The IRS began accepting electronic and paper tax returns on Monday, Jan. 23, 2017. More than 153 million individual tax returns are expected to be filed in 2017, according to the IRS.

Taxpayers are reminded that a new law (more details, below) requires the IRS to hold refunds claiming the Additional Child Tax Credit (ACTC) and the Earned Income Tax Credit (EITC) until February 15, although due to weekends and the President’s Day holiday, many affected taxpayers may not have access to their refunds until the week of February 27. Taxpayers should file as usual, and tax return preparers should also submit returns as they normally do–including returns claiming EITC and ACTC.

April 18 Filing Deadline

The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday (April 17). However, Emancipation Day, which is a legal holiday in the District of Columbia, will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.

The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit, a joint initiative between the IRS and representatives of the software industry, tax preparation firms, payroll and tax financial product processors and state tax administrators to combat identity theft refund fraud and protect the nation’s taxpayers. A number of new provisions are being added in 2017 to expand progress made during the past year.

Refunds in 2017

The IRS anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.

Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the entire refund (even the portion not associated with the EITC and ACTC) until at least February 15. This change helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent fraud.

The IRS will begin releasing EITC and ACTC refunds starting February 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or on debit cards until the week of February 27 (assuming there are no processing issues with the tax return and the taxpayer chose direct deposit). This additional period is due to several factors, including banking and financial systems needing time to process deposits.

After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. Many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day may affect their refund timing.

Need Help?

Don’t hesitate to call the office if you have any questions or need assistance filing your tax return this year.

 

Missing your Form W-2?

You should receive a Form W-2, Wage and Tax Statement, from each of your employers for use in preparing your federal tax return. Employers must furnish this record of 2016 earnings and withheld taxes no later than January 31, 2017 (if mailed, allow a few days for delivery).

If you do not receive your Form W-2, contact your employer to find out if and when the W-2 was mailed. If it was mailed, it may have been returned to your employer because of an incorrect address. After contacting your employer, allow a reasonable amount of time for your employer to resend or to issue the W-2.

If you still do not receive your W-2 by mid-February, contact the IRS for assistance at 1-800-829-1040. When you call, have the following information handy:

  • the employer’s name and complete address, including zip code, and the employer’s telephone number;
  • the employer’s identification number (if known);
  • your name and address, including zip code, Social Security number, and telephone number; and
  • an estimate of the wages you earned, the federal income tax withheld, and the dates you began and ended employment. You can use your final pay stub for these amounts.

If you misplaced your W-2, contact your employer. Your employer can replace the lost form with a “reissued statement.” Be aware that your employer is allowed to charge you a fee for providing you with a new W-2.

You still must file your tax return on time even if you do not receive your Form W-2. If you cannot get a W-2 by the tax filing deadline, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement, but it will delay any refund due while the information is verified.

If you receive a corrected W-2 after your return is filed and the information it contains does not match the income or withheld tax that you reported on your return, you must file an amended return on Form 1040X, Amended U.S. Individual Income Tax Return.

Important: 2016 Health Insurance Forms

Starting in 2016, most taxpayers received one or more forms relating to health care coverage they had during the previous year.

If you enrolled in 2016 coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement by early February.

If you were enrolled in other health coverage for 2016, you should receive a Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health insurance Offer and Coverage by the end of March. Contact the issuer of the form (either the Marketplace, your coverage provider or your employer) if you think you should have received a form but did not get one.

If you are expecting to receive a Form 1095-A, you should wait to file your 2016 income tax return until you receive that form. However, it is not necessary to wait for Forms 1095-B or 1095-C in order to file.

If you have questions about your Forms W-2 or 1099 or any other tax-related materials, please call or email the office.

 

Updated Withholding Tables for 2017

Updated income-tax withholding tables for 2017 have been released. The newly revised version contains percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should continue withholding Social Security tax at the rate of 6.2 percent of wages paid. The Social Security wage base limit increases to $127,200 ($118,500 in 2016). The Medicare tax rate remains at 1.45 percent each for the employee and employer.

The additional Medicare tax of 0.9 percent for employees (not employers) remains in effect and should be withheld from employee wages that exceed $200,000 in a calendar year, at the beginning in the pay period in which the employee’s wages exceed $200,000.

In 2017 the amount for one withholding allowance on an annual basis is $4,050 (same as 2016). Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2017, but not later than February 16, 2017. For any Social Security tax under-withheld before that date, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2017.

Employers and payroll companies handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form. Individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

As always, it’s prudent for workers to review their withholding every year and, if necessary, fill out a new W-4 to give to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

Please call the office if you have any questions about income tax withholding in 2017.

 

Kids’ Day Camp Expenses May Qualify for a Tax Credit

Day camps are common during school vacations and the summer months. Many parents enroll their children in a day camp or pay for day care so they can work or look for work. If this applies to you, your costs may qualify for a federal tax credit. Here are 10 things to know about the Child and Dependent Care Credit:

  1. Care for Qualifying Persons. Your expenses must be for the care of one or more qualifying persons. Your dependent child or children under age 13 generally qualify.
  2. Work-related Expenses. Your expenses for care must be work-related. In other words, you must pay for the care so you can work or look for work. This rule also applies to your spouse if you file a joint return. Your spouse meets this rule during any month they are a full-time student. They also meet it if they are physically or mentally incapable of self-care.
  3. Earned Income Required. You must have earned income. Earned income includes wages, salaries and tips. It also includes net earnings from self-employment. Your spouse must also have earned income if you file jointly. Your spouse is treated as having earned income for any month that they are a full-time student or incapable of self-care.
  4. Joint Return if Married. Generally, married couples must file a joint return. You can still take the credit, however, if you are legally separated or living apart from your spouse.
  5. Type of Care. You may qualify for the credit whether you pay for care at home, at a daycare facility or at a day camp.
  6. Credit Amount. The credit is worth between 20 and 35 percent of your allowable expenses. The percentage depends on your income.
  7. Expense Limits. The total expense that you can use in a year is limited. The limit is $3,000 for one qualifying person or $6,000 for two or more.
  8. Certain Care Does Not Qualify. You may not include the cost of certain types of care for the tax credit, including:
  • Overnight camps or summer school tutoring costs.
  • Care provided by your spouse or your child who is under age 19 at the end of the year.
  • Care given by a person you can claim as your dependent.
  1. Keep Records and Receipts.Keep all your receipts and records for when you file taxes next year. You will need the name, address and taxpayer identification number of the care provider. You must report this information when you claim the credit on Form 2441, Child and Dependent Care Expenses.
  2. Dependent Care Benefits.Special rules apply if you get dependent care benefits from your employer.

Keep in mind this credit is not just a school vacation or summer tax benefit. You may be able to claim it at any time during the year for qualifying care. For more information, please call the office.

 

Qualifying for a Health Coverage Exemption

With the 2017 tax filing season in full swing, it’s not too early to think about how the health care law affects your taxes. The Affordable Care Act requires you and each member of your family to do at least one of the following:

  • Have qualifying health coverage called minimum essential coverage
  • Qualify for a health coverage exemption
  • Make a shared responsibility payment with your federal income tax return for the months that you did not have coverage or an exemption

If you meet certain criteria for the tax year, you may be exempt from the requirement to have minimum essential coverage. You will not have to make a shared responsibility payment for any month that you are exempt. Instead, you’ll file Form 8965, Health Coverage Exemptions, with your federal income tax return. For any month that you do not qualify for a coverage exemption, you will need to have minimum essential coverage or make a shared responsibility payment. You may be exempt if you meet one of the following:

  • The lowest-cost coverage available to you is considered unaffordable
  • You have a gap in coverage that is less than three (3) consecutive months
  • You qualify for an exemption for one of several other reasons, including having a hardship that prevents you from obtaining coverage or belonging to a group specifically exempt from the coverage requirement

The Federally-facilitated Marketplace is no longer granting exemptions for members of a health care sharing ministry, members of Indian Tribes, and incarceration. Eligible individuals can still claim these exemptions on a tax return. For a full list of exemptions and how to claim them, please call.

Federal tax returns that do not reflect at least one of these options–reporting health care coverage, claiming a coverage exemption or reporting a shared responsibility payment–will be rejected if the return is filed electronically. If filed on paper, tax returns that do not reflect at least one of these options will take longer to process and any refunds will be delayed. You should respond promptly to IRS correspondence about your health care coverage.

Questions?

To find out if you’re eligible for a coverage exemption or must make a payment, don’t hesitate to contact the office. Help is just a phone call away.

 

Tax Due Dates for February 2017

February 10

Employees – who work for tips. If you received $20 or more in tips during January, report them to your employer. You can use Form 4070.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2016. This due date applies only if you deposited the tax for the quarter in full and on time.

Farm Employers – File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2016. This due date applies only if you deposited the tax for the year in full and on time.

Certain Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2016. This tax due date applies only if you deposited the tax for the year in full and on time.

Employers – Nonpayroll taxes. File Form 945 to report income tax withheld for 2016 on all nonpayroll items. This due date applies only if you deposited the tax for the year in full and on time.

Employers – Federal unemployment tax. File Form 940 for 2016. This due date applies only if you deposited the tax for the year in full and on time.

February 15

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in January.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in January.

Individuals – If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year.

All businesses. Give annual information statements to recipients of certain payments you made during 2016. You can use the appropriate version of Form 1099 or other information return.

February 16

Employers – Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2016, but did not give you a new Form W-4 to continue the exemption this year.

February 28

Businesses – File information returns (Form 1099) for certain payments you made during 2016. These payments are described under January 31. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the 2016 Instructions for Forms 1099, 1098, 5498, and W-2G for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file.

If you file Forms 1097, 1098, 1099, 3921, 3922, or W-2G electronically (except Form 1099-MISC reporting nonemployee compensation), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms is still January 31.

Payers of Gambling Winnings – File Form 1096, Annual Summary and Transmittal of U.S. Information Returns, along with Copy A of all the Forms W-2G you issued for 2016. If you file Forms W-2G electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains January 31.

Large Food and Beverage Establishment Employers – with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31.

Health Coverage Reporting – If you’re an Applicable Large Employer, file paper Forms 1094-­C, Transmittal of Employer–Provided Health Insurance Offer and Coverage Information Returns, and 1095-­C with the IRS. For all other providers of minimum essential coverage, file paper Forms 1094-­B, Transmittal of Health Coverage Information Returns, and 1095-­B with the IRS. If you’re filing any of these forms with the IRS electronically, your due date for filing them will be extended to March 31.

March 1

Farmers and Fishermen – Farmers and fishermen. File your 2016 income tax return (Form 1040) and pay any tax due. However, you have until April 18 to file if you paid your 2016 estimated tax by January 17, 2017.

 

Rex Crandell Firm
3000 Citrus Circle, #207
Walnut Creek, CA, 94598
Phone: (925) 934-6320
RexCrandell@astound.net

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

 

Copyright © 2017  All materials contained in this document are protected by U.S. and international copyright laws. All other trade names, trademarks, registered trademarks and service marks are the property of their respective owners.

THE END.  THANK YOU FOR YOUR TIME AND ATTENTION………………..

………………………

Z:\ADMIN\VENDORS\WORDPRESS
BLOG\RexCPA~TAX Blog\TY 17\
February 2017Newsletter
 for TAX BLOG rlc 02 10 17
DOCX Ver~LARGER FONT BIGGER
 4 WORDPRESS .docx & PDF

 

==============================================================

=============================%

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)

3000 Citrus Circle

Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]

(925) 934-6320
————————-
San Francisco Office

425 Market Street

22nd Floor [ Click For MAP TO OUR OFFICE]

(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net

Internet: http://www.rexcrandell.com

Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com


Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

__________________________________

DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.

image

======================
Any accounting, business, legal or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.
======================
.

.

.

.

Advertisements

I am sure you were wondering how a corporation dies and goes to heaven.  Now is your chance to satisfy your curiosity and find out.  The following information tells it like it is and how to do it.  See this report: HOW DO I LIQUIDATE OR DISSOLVE A CORPORATION SO THAT I PAY THE LEAST AMOUNT OF TAX?

So, you own a Corporation that is no longer needed and you want to close it down.

  • HOW DO I LIQUIDATE OR DISSOLVE A CORPORATION

  • SO THAT I PAY THE LEAST AMOUNT OF TAX?

 

 

   By Rex L. Crandell, CPA, Attorney

   The first issue to address information on reporting the liquidation from the C-Corporation’s perspective.

          When a corporation liquidates, the board of directors will vote and pass a documented corporate resolution to liquidate the corporation which will need to be confirmed in writing by the shareholders.  One person can have more than one title and should sign the documents for each title used.  For example:  #1 SHAREHOLDER, signs as a Director then   #1 SHAREHOLDER, signs as a shareholder.

      The corporation will prepare an IRS Form 966 to inform the IRS as to the upcoming liquidation.  The IRS Form 966 and related required form documentation is then filed with the IRS within thirty (30) days of the liquidation resolution.  The form filing should not wait until the C-Corporation tax returns are completed and submitted.  The IRS Form 966 should indicate that this is a complete liquidation (IRS Form 966, line 3) and that IRC§331 was the code section that the corporation will be liquidated (line 10).  See the IRS Form 966 for additional information and requirements.

        The corporation will treat the liquidation as a sale of all assets at their current Fair Market Value (hereafter referred to as FMV).  It is not permissible to report the asset transactions at their historical book values as indicated on the company’s Balance Sheet and Depreciation Schedule.  There should be a worksheet included in the corporate tax returns showing the sales transaction and the gain or loss between the FMV and book value for each asset.  Once the corporate tax returns are completed and ready to be submitted, it should include a copy of the IRS Form 966 that was already filed with the IRS.

        The transaction is taxable as a sale of assets by the C-corporation (IRS Form 1120).  The transaction is also treated as a sale of corporate stock by the shareholders IRS Form 1040.  This is the infamous double taxation that applies to C-Corporations.

   A C-Corporation distribution of retained earnings will be treated as a taxable dividend received by the shareholder.

   When a C Corporation liquidation is done by electing IRC §331 tax treatment, the payment of retained earnings to the shareholders is not considered a taxable dividend to the shareholder.  It is considered as an integral part of the presumed stock sale transaction.

   This is in contrast to an S-Corporation, because an S-Corporation’s retained earnings automatically flows through the S-Corporation to the shareholders as dividend regardless if the shareholder was paid the retained earnings in cash or if no distribution of cash took place.

  What should be the value of the Life Insurance policies?

       If you are unable to determine the FMV of assets, you can request the assistance of a professional appraiser or some other person with specialized skills to determine the current FMV.  An online search could be used to support the value of some assets.  In terms of the life insurance policies, since a willing buyer would pay at least the cash value of the policy, then the cash value would be the FMV less a nominal transaction and inconvenience fee to the hypothetical buyer.  If your insurance agent feels that the separate death benefit part of life insurance has a market value, then it should be used as the sales price.

   What should the shareholder’s basis be for the sales transaction?                    

      Shareholder basis is determined by considering the amount of money contributed to the corporation at the time the shares were acquired.  This is called outside basis in the hands of the shareholder.  This number may end up being different from the inside basis shown on the corporation’s balance sheet.  Then the evolving basis computation would include any additional funds that were contributed to the corporation or assets transferred to the corporation.  If the corporation had paid the shareholder an amount in excess of the retained earnings of the company, then it would have been considered a return of capital to reduce the stock basis.  If the shareholders have no way of calculating the shareholder’s basis, some people will end up reporting the basis on the corporation’s balance sheet as the closest reconstruction of data that is unavailable.

       The above basis calculation method is the way most stock basis computations are made.  However, if a shareholder received a stepped up basis under IRC §1014 because of the death of a spouse that was holding title in community property, then the starting point for the evolving basis computation will be the FMV of the stock as indicated on IRS Form 706 or other documentation.  From that point, increases or decreases could take place in the stock basis depending on the type of transactions discussed in “G” above.

      The shareholders will report the complete liquidation of their shares considering the transaction as a sale of stock for the value of the compensation, funds, assets received from the corporation.  The basis used for the sale cost basis will be the shareholder’s basis in the stock.

         The gain or loss of the sale of stock will then be reported on the shareholder’s annual IRS Form 1040 in the usual manner. IRS Form 1040, Schedule D after IRS Form 8949.  However, you should also consider the beneficial tax treatment under IRC §1202 Qualified Small Business Stock.  If the C-Corporation meets all of the requirements to be properly classified as Qualified Small Business stock, then you can claim the IRC §1202 exclusion of half of the gain on the sale of the shares.

      The shareholder’s individual income tax return should show a worksheet indicating how the gain or loss on the sale of the corporation was computed.  In addition, it is suggested that you also include a copy of the same IRS Form 966 that was filed by the corporation.

    DISSOLVE THE CORPORATE ENTITY WITH THE STATE OF CALIFORNIA.

   You will need to petition the state to get the formal dissolution resolved at the state of California level to avoid paying the annual $800+ minimum franchise tax and to avoid the requirement to continue to file annual corporate tax returns for federal and California.

   CONCLUSION

   A liquidation of a corporation is treated as a sale of stock.  This factor should not be ignored by the liquidating corporation or the owner/shareholders of the corporate entity.  If the corporation never issued actual stock certificates to the owners of the corporation, it does not affect the taxability of the transaction.  True ownership is the determining factor and not the tangible paper called a stock certificate.

   You should distribute all the assets and pay off all liabilities before you dissolve the corporate entity and before filing your final federal and California corporate tax returns.

  I hope I was able to address and resolve all of your questions and concerns.  If there is any additional information that is needed or any additional concerns that I have not addressed, please you’re your questions and service requests to our office for evaluation.

   Very truly yours,

   Rex L. Crandell
Rex L. Crandell

Enrolled to Represent Taxpayers before the IRS
Enrolled to practice in the United States Tax Court
The Law Office of Rex Crandell
The Office of Rex Crandell, CPA, Inc.

rlc-smileytjb_-01-10-17_biz_-linkedin-photo-rlc-01-25-17

 

 

 

 

 

 

 

 

 

 

=============================%

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)

3000 Citrus Circle

Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]

(925) 934-6320
————————-
San Francisco Office

425 Market Street

22nd Floor [ Click For MAP TO OUR OFFICE]

(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net

Internet: http://www.rexcrandell.com

Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com


Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

__________________________________

DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.

image

======================
Any accounting, business, legal or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.
======================
.

.

.

.

 

NEW TAXES and PENALTIES.
Check out the new Affordable Care Act Tax (ACA) Features. Expect to answer questions about your health coverage when preparing your 2014 personal income tax returns before April 15th 2015 (soon).
 
image

.
Update:

Each year the Health Insurance Marketplace has an open enrollment period.  The open enrollment period to purchase health care insurance for 2015 runs from Nov. 15, 2014, through Feb. 15, 2015. Contact the Marketplace at HealthCare.gov to enroll and to get information about financial assistance to purchase health care coverage for you and your family.

On Sept. 10, 2014, IRS Commissioner John A. Koskinen testified before the House Ways and Means Committee’s subcommittee on Health. The commissioner’s testimony focused on the IRS’s role in the implementation of the Affordable Care Act and what the IRS is doing to ensure that taxpayers know how provisions of the law may affect them.

Effect of Sequestration on Small Business Health Care Tax Credit – Tax-Exempt Employers Only
Due to sequestration, refund payments issued to certain small tax-exempt employers claiming the refundable portion of the Small Business Health Care Tax Credit under Internal Revenue Code section 45R, are subject to sequestration. This means that refund payments processed on or after Oct. 1, 2014, and on or before Sept. 30, 2015, issued to a tax-exempt taxpayer claiming the Small Business Health Care Tax Credit under section 45R will be reduced by the fiscal year 2015 sequestration rate of 7.3 percent (regardless of when the original or amended tax return was received by the IRS). The sequestration reduction rate will be applied unless and until a law is enacted that cancels or otherwise impacts the sequester, at which time the sequestration reduction rate is subject to change.  Sequestration only affects the refundable portion of the Small Business Health Care Tax Credit filed by tax-exempt employers.  Sequestration does not impact Small Business Health Care Tax Credit claims by non-tax-exempt employers, as the credit is not a refundable credit for non-tax-exempt employers.

Affected taxpayers will be notified through correspondence that a portion of their requested payment was subject to the sequester reduction and the amount.
IRC §7216, Disclosure or Use of Information by Tax Return Preparers
Final Treasury Regulations on rules and consent requirements relating to the disclosure or use of tax return information by tax return preparers became effective Dec. 28, 2012. For additional information about how these apply to services and education related to the Affordable Care Act, please see our questions and answers. 

Medical Loss Ratio (MLR)
Beginning in 2011, insurance companies are required to spend a specified percentage of premium dollars on medical care and quality improvement activities, meeting a medical loss ratio (MLR) standard. Insurance companies that are not meeting the MLR standard will be required to provide rebates to their consumers beginning in 2012. For information on the federal tax consequences to an insurance company that pays a MLR rebate and an individual policyholder who receives a MLR rebate, as well as information on the federal tax consequences to employees if a MLR rebate stems from a group health insurance policy, see our frequently asked questions.
Reporting Employer Provided Health Coverage in Form W-2
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement.
image

The amount reported does not affect tax liability, as the value of the employer excludible contribution to health coverage continues to be excludible from an employee’s income, and it is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.

More information about the reporting can be found on Form W-2 Reporting of Employer-Sponsored Health Coverage.

Net Investment Income Tax
A new Net Investment Income Tax went into effect on Jan. 1, 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above certain threshold amounts. On Nov. 26, 2013, the IRS and the Treasury Department issued final regulations, which provide guidance on the general application of the Net Investment Income Tax and the computation of Net Investment Income. In addition, on Nov. 26, 2013, the IRS and the Treasury Department issued proposed regulations on the computation of net investment income as it relates to certain specific types of property. Comments may be submitted electronically, by mail or hand delivered to the IRS. For additional information on the Net Investment Income Tax, see our questions and answers.
image

Additional Medicare Tax
A new Additional Medicare Tax went into effect on Jan. 1, 2013. The 0.9 percent Additional Medicare Tax applies to an individual’s wages, Railroad Retirement Tax Act compensation and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year. On Nov. 26, 2013, the IRS and the Department of the Treasury issued final regulations which provide guidance for employers and individuals relating to the implementation of Additional Medicare Tax, including the requirement to withhold Additional Medicare Tax on certain wages and compensation, the requirement to report Additional Medicare Tax, and the employer process for adjusting underpayments and overpayments of Additional Medicare Tax. In addition, the regulations provide guidance on the employer and individual processes for filing a claim for refund for an overpayment of Additional Medicare Tax.
.
image

Minimum Value.
.
On April 26, 2012, the Department of the Treasury and IRS issued Notice 2012-31, which provides information and requested public comment on an approach to determining whether an eligible employer-sponsored health plan provides minimum value. Additionally, on April 30, 2013, the Treasury Department and the IRS issued proposed regulations relating to minimum value of eligible employer-sponsored plans and other rules regarding the premium tax credit. Starting in 2014, whether such a plan provides minimum value will be relevant to eligibility for the premium tax credit and application of the employer shared responsibility payment. 
.
On November 4, 2014, the Department of the Treasury and IRS issued Notice 2014-69, which provides additional guidance regarding whether an employer-sponsored plan provides minimum value coverage if the plan fails to substantially cover in-patient hospitalization services or physician services.
Information Reporting on Health Coverage by Employers.
.
On March 5, 2014, the Department of the Treasury and IRS issued final regulations on employer health insurance coverage information reporting. The information reporting relates to health insurance coverage that is offered by certain employers, referred to as applicable large employers, and reporting is to be provided by each member of an applicable large employer. Additionally, on July 9, 2013, the Department of the Treasury and the IRS issued Notice 2013-45, announcing transition relief for 2014 from this annual information reporting. For additional information on the employer health insurance coverage information reporting see our questions and answers and this fact sheet issued by the U.S. Department of the Treasury. 
.
On July 24, 2014, the IRS released draft forms that employers will use to report on health coverage that they offer to their employees. In accordance with the IRS’ normal process, these draft forms are being provided to help stakeholders, including employers, tax professionals and software providers, prepare for these new reporting provisions and to invite comments from them. On Aug. 28, 2014, draft instructions relating to the forms were posted to IRS.gov. Both the forms and instructions will be finalized later this year.
Information Reporting on Health Coverage by Insurers
On March 5, 2014, the Department of the Treasury and IRS issued final regulations on minimum essential coverage information reporting. The information reporting is to be provided by health insurance issuers, certain sponsors of self-insured plans, government agencies and certain other parties that provide health coverage. Additionally, on July 9, 2013, the Department of the Treasury and the IRS issued Notice 2013-45 announcing transition relief for 2014 from this annual information reporting.
.
On July 24, 2014, the IRS released draft forms that insurers will use to report on health coverage that they provide for individuals that they cover. In accordance with the IRS’ normal process, these draft forms are being provided to help stakeholders, including insurers, employers, tax professionals and software providers, prepare for these new reporting provisions and to invite comments from them. On August 28, 2014, draft instructions relating to the forms were posted to IRS.gov. Both the forms and instructions will be finalized later this year.
Disclosure of Return Information.
.
image

On Aug. 13, 2013, the Department of the Treasury and the IRS issued final regulations with rules for disclosure of return information to the Department of Health and Human Services that will be used to carry out eligibility determinations for advance payments of the premium tax credit, Medicaid and other health insurance affordability programs.
.
Small Business Health Care Tax Credit:
.
This credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. On June 26, 2014, the Department of Treasury and the IRS issued final regulations on the credit, which include information on the requirement to purchase health insurance coverage through the Small Business Health Options Program (SHOP) Marketplace. The final regulations are applicable for taxable years beginning in or after 2014. Additionally, IRS Notice 2014-06 provides transition relief for employers in certain counties in Washington and Wisconsin with no SHOP coverage available. For taxable years beginning in 2010 through 2013, taxpayers can rely on the guidance in the proposed regulations, Notice 2010-44 and Notice 2010-82. Learn more by browsing our page on the Small Business Health Care Tax Credit for Small Employers.
.

Application of the Affordable Care Act to Health Reimbursement Arrangements, Health Flexible Spending Arrangements and Certain Other Employer Healthcare Arrangements
The Affordable Care Act’s market reforms apply to group health plans. On Sept. 13, 2013, the IRS issued Notice 2013-54, which explains how the Affordable Care Act’s market reforms apply to certain types of group health plans, including health reimbursement arrangements (HRAs), health flexible spending arrangements (health FSAs) and certain other employer healthcare arrangements, including arrangements under which an employer reimburses an employee for some or all of the premium expenses incurred for an individual health insurance policy. The notice also provides guidance on employee assistance programs or EAPs and on section 125(f)(3), which prohibits the use of pre-tax employee contributions to cafeteria plans to purchase coverage on an Affordable Insurance Exchange (also known as a Health Insurance Marketplace). The notice applies for plan years beginning on and after Jan. 1, 2014, but taxpayers may apply the guidance provided in the notice for all prior periods.  
.
DOL has issued a notice in substantially identical form to Notice 2013-54, DOL Technical Release 2013-03. On Jan. 24, 2013, DOL and HHS issued FAQs that address the application of the Affordable Care Act to HRAs. On Nov. 6, 2014, DOL issued additional FAQs that address the application of the Affordable Care Act to HRAs and other payment arrangements.
Additional information is also available regarding consequences to the employer if the employer does not establish a health insurance plan for its own employees, but reimburses those employees for premiums they pay for health insurance (either through a qualified health plan in the Marketplace or outside the Marketplace).
On Jan. 9, 2014, DOL and HHS issued FAQs that addressed, among other things, future rules relating to excepted benefits.
.
Health Flexible Spending Arrangements
Effective Jan. 1, 2011, the cost of an over-the-counter medicine or drug cannot be reimbursed from Flexible Spending Arrangements (FSAs) or health reimbursement arrangements unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. This standard applies only to purchases made on or after Jan. 1, 2011. A similar rule went into effect on Jan. 1, 2011, for Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (Archer MSAs). Employers and employees should take these changes into account as they make health benefit decisions. For more information, see news release IR-2010-95, Notice 2010-59, Revenue Ruling 2010-23 and our questions and answers. FSA and HRA participants can continue using debit cards to buy prescribed over-the-counter medicines, if requirements are met. For more information, see news release IR-2010-128 and Notice 2011-5. Additionally, Notice 2013-57 provides information about the definition of preventive care for purposes of high deductible health plans associated with HSAs. 
In addition, starting in 2013, there are new rules about the amount that can be contributed to an FSA. Notice 2012-40 provides information about these rules and flexibility for employers applying the new rules. On Oct. 31, 2013, the Department of the Treasury and IRS issued Notice 2013-71, which provides information on a new $500 carryover option for employer-sponsored healthcare flexible spending arrangements. Learn more by reading the news release issued by the U.S. Department of the Treasury.
Further, Notice 2013-54 provides guidance regarding the application of the Affordable Care Act’s market reforms to certain health FSAs.   
.
Medical Device Excise Tax
On Dec. 5, 2012, the IRS and the Department of the Treasury issued final regulations on the new 2.3-percent medical device excise tax (IRC §4191) that manufacturers and importers will pay on their sales of certain medical devices starting in 2013. On Dec. 5, 2012, the IRS and the Department of the Treasury also issued Notice 2012-77, which provides interim guidance on certain issues related to the medical device excise tax. Additional information is available on the Medical Device Excise Tax page and Medical Device Excise Tax FAQs on IRS.gov.
Changes to Itemized Deduction for Medical Expenses
Beginning Jan. 1, 2013, you can claim deductions for medical expenses not covered by your health insurance when they reach 10 percent of your adjusted gross income. This change affects your 2013 tax return that you will file in 2014. There is a temporary exemption from Jan. 1, 2013, to Dec. 31, 2016, for individuals age 65 and older and their spouses. For additional information, see our questions and answers.
Health Insurance Premium Tax Credit.
.
Starting in 2014, individuals and families can take a new premium tax credit to help them afford health insurance coverage purchased through an Affordable Insurance Exchange (also known as a Health Insurance Marketplace). The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. On May 18, 2012, the Department of the Treasury and the IRS issued final regulations, which provide guidance for individuals who enroll in qualified health plans through Marketplaces and claim the premium tax credit, and for Marketplaces that make qualified health plans available to individuals and employers. On Jan. 30, 2013, the Department of the Treasury and IRS released final regulations on the premium tax credit affordability test for related individuals. On April 30, 2013, the Department of the Treasury and the IRS issued proposed regulations relating to minimum value of eligible employer-sponsored plans and other rules regarding the premium tax credit. On November 4, 2014, the Department of the Treasury and IRS issued Notice 2014-69, which provides additional guidance regarding whether an employer-sponsored plan provides minimum value coverage if the plan fails to substantially cover in-patient hospitalization services or physician services. Notice 2013-41, issued on June 26, 2013, provides information for determining whether or when individuals are considered eligible for coverage under certain Medicaid, Medicare, CHIP, TRICARE, student health or state high-risk pool programs. This determination will affect whether the individual is eligible for the premium tax credit. On November 7, 2014, the Department of the Treasury and IRS issued Notice 2014-71, which advises that an individual enrolled in a qualified health plan who becomes eligible for Medicaid coverage for pregnancy-related services that is minimum essential coverage, or for CHIP coverage based on pregnancy, is treated as eligible for minimum essential coverage under the Medicaid or CHIP coverage for purposes of the premium tax credit only if the individual enrolls in the coverage. On May 2, 2014, the Department of the Treasury and the IRS issued final regulations on the reporting requirements for Marketplaces. On July 24, 2014, the Department of the Treasury and the IRS issued proposed, temporary and final regulations providing further guidance on the premium tax credit. In particular, the regulations provide relief for certain victims of domestic abuse or spousal abandonment from the requirement to file jointly in order to claim the premium tax credit. In addition, the regulations provide special allocation rules for reconciling advance credit payments, address the indexing in future years of certain amounts used to determine eligibility for the credit and compute the credit, and provide rules for the coordination between the credit and the deduction under section 162(l) for health insurance costs of self-employed individuals. Rev. Proc. 2014-41, also released on July 24, 2014, provides methods for determining the section 162(l) deduction and the premium tax credit for health insurance costs of self-employed individuals who claim the deduction under section 162(l).
.
Individual Shared Responsibility Provision
Starting in 2014, the individual shared responsibility provision calls for each individual to either have minimum essential coverage for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return. On June 26, 2013, the IRS released Notice 2013-42, which provides transition relief for employees eligible to enroll in a non-calendar year employer-sponsored health plan that begins in 2013 and ends in 2014. On Aug. 27, 2013, the Department of the Treasury and the IRS issued final regulations on the individual shared responsibility provision. On Jan. 23, 2014, the Department of the Treasury and the IRS issued proposed regulations addressing several issues that were identified in the preamble to the final regulations. On July 24, 2014, the IRS issued Rev. Proc. 2014-46, which provides the 2014 monthly national average premium for qualified health plans that have a bronze level of coverage. This amount is used to determine the maximum individual shared responsibility payment that may be due. On November 21, 2014, the Department of the Treasury and the IRS issued regulations finalizing the January 2014 proposed regulations. The final regulations address the treatment of health reimbursement arrangements, cafeteria plans, and wellness program incentives for purposes of determining the unaffordability exemption for individuals with offers of employer sponsored coverage.  The regulations also provide that certain limited benefit Medicaid and TRICARE coverage is not minimum essential coverage (Notice 2014-10, issued on Jan. 23, 2014, provides transition relief from the shared responsibility payment for months in 2014 in which individuals have this limited benefit coverage).  On November 21, 2014, the IRS issued Notice 2014-76, which identifies the hardship exemptions from the individual shared responsibility payment that a taxpayer may claim on a Federal income tax return without obtaining an exemption certification from a Health Insurance Marketplace. For additional information on the individual shared responsibility provision, see our ISRP page and questions and answers. Additional information on exemptions and minimum essential coverage is available in final regulations issued by the U.S. Department of Health & Human Services. 
Health Coverage for Older Children
Health coverage for an employee’s children under 27 years of age is now generally tax-free to the employee. This expanded health care tax benefit applies to various work place and retiree health plans. These changes immediately allow employers with cafeteria plans –– plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits –– to permit employees to begin making pre-tax contributions to pay for this expanded benefit. This also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return. Learn more by reading our news release or this notice.
Excise Tax on Indoor Tanning Services
A 10-percent excise tax on indoor UV tanning services went into effect on July 1, 2010. Payments are made along with Form 720, Quarterly Federal Excise Tax Return. The tax doesn’t apply to phototherapy services performed by a licensed medical professional on his or her premises. There’s also an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee. For more information on the tax and how it is administered, see the Indoor Tanning Services Tax Center.
Adoption Credit.

For tax years 2010 and 2011, the Affordable Care Act raised the maximum adoption credit per child and the credit was refundable. For more information related to the adoption credit for tax years 2010 and 2011, see our news release, tax tip, questions and answers, flyer, Notice 2010-66, Revenue Procedure 2010-31, Revenue Procedure 2010-35 and Revenue Procedure 2011-52.
For tax year 2012, the credit has reverted to being nonrefundable, with a maximum amount (dollar limitation) of $12,650 per child. If you adopted a child in 2012, see Tax Topic 607 for more information. 
Transitional Reinsurance Program.
.
The ACA requires all health insurance issuers and self-insured group health plans to make contributions under the transitional Reinsurance Program to support payments to individual market issuers that cover high-cost individuals. For information on the tax treatment of contributions made under the Reinsurance Program, see our frequently asked questions.
Medicare Shared Savings Program.
.
The Affordable Care Act establishes a Medicare shared savings program (MSSP) which encourages Accountable Care Organizations (ACOs) to facilitate cooperation among providers to improve the quality of care provided to Medicare beneficiaries and reduce unnecessary costs. More information can be found in Notice 2011-20, which solicited written comments regarding what additional guidance, if any, is needed for tax-exempt organizations participating in the MSSP through an ACO. This guidance also addresses the participation of tax-exempt organizations in non-MSSP activities through ACOs. Additional information on the MSSP is available on the Department of Health and Human Services website.
The Centers for Medicare and Medicaid Services has released final regulations describing the rules for the Shared Savings Program and accountable care organizations. Fact Sheet 2011-11 confirms that Notice 2011-20 continues to reflect IRS expectations regarding the Shared Savings Program and ACOs, and provides additional information for charitable organizations that may wish to participate. 
On October 24, 2014, the Department of the Treasury and the IRS issued Notice 2014-67, which describes the conditions under which a hospital or other health care facility with tax-exempt bonding authority may participate in an ACO without jeopardizing the tax-exempt status of the bonds financing that facility.
.
Qualified Therapeutic Discovery Project Program
This program was designed to provide tax credits and grants to small firms that show significant potential to produce new and cost-saving therapies, support U.S. jobs and increase U.S. competitiveness. Applicants were required to have their research projects certified as eligible for the credit or grant. IRS guidance describes the application process.
.
Submission of certification applications began June 21, 2010, and applications had to be postmarked no later than July 21, 2010, to be considered for the program. Applications that were postmarked by July 21, 2010, were reviewed by both the Department of Health and Human Services (HHS) and the IRS. All applicants were notified by letter dated October 29, 2010, advising whether or not the application for certification was approved. For those applications that were approved, the letter also provided the amount of the grant to be awarded or the tax credit the applicant was eligible to take.
.
The IRS published the names of the applicants whose projects were approved as required by law. Listings of results are available by state.
Learn more by reading the IRS news release, the news release issued by the U.S. Department of the Treasury, the page on the HHS website and our questions and answers.
.
Group Health Plan Requirements.
.
The Affordable Care Act establishes a number of new requirements for group health plans. Interim guidance on changes to the nondiscrimination requirements for group health plans can be found in Notice 2011-1, which provides that employers will not be subject to penalties until after additional guidance is issued. Additionally, TD 9575 and REG-140038-10, issued by DOL, HHS and IRS, provide information on the summary of benefits and coverage and the uniform glossary. Notice 2012-59 provides guidance to group health plans on the waiting periods they may apply before coverage starts. On June 20, 2014, HHS, DOL and IRS issued final regulations on the ninety-day waiting period limitation.. 
.
More information on group health plan requirements is available on the websites of the Departments of Health and Human Services and Labor and in additional guidance.
.
Further, Notice 2013-54 provides guidance regarding the application of the Affordable Care Act’s market reforms to certain types of group health plans, including health reimbursement arrangements (HRAs), health flexible spending arrangements (health FSAs) and certain other employer healthcare arrangements, including arrangements under which an employer reimburses an employee for some or all of the premium expenses incurred for an individual health insurance policy. 
Annual Fee on Health Insurance Providers
The Affordable Care Act created an annual fee on certain health insurance providers beginning in 2014. On Nov. 26, 2013, the Treasury Department and IRS issued final regulations on this annual fee imposed on covered entities engaged in the business of providing health insurance for United States health risks. On Aug. 12, 2014, the Treasury Department and IRS issued Notice 2014-47 clarifying the scope of the term “covered entity” and the fact that reporting is not required in 2014 for an entity that would not qualify as a covered entity, even if it is a member of a controlled group that is a covered entity.
For additional information visit our Affordable Care Act Provision 9010 – Health Insurance Providers Fee page. 
.
Tax-Exempt 501(c)(29) Qualified Nonprofit Health Insurance Issuers
The Affordable Care Act requires the Department of Health and Human Services (HHS) to establish the Consumer Operated and Oriented Plan program (CO-OP program). It also provides for tax exemption for recipients of CO-OP program grants and loans that meet additional requirements under section 501(c)(29). IRS Notice 2011-23 outlined the requirements for tax exemption under section 501(c)(29) and solicited written comments regarding these requirements as well as the application process. Revenue Procedure 2012-11, issued in conjunction with temporary regulations and a notice of proposed rulemaking, sets out the procedures for issuing determination letters and rulings on the exempt status of organizations applying for recognition of exemption under 501(c)(29).
An overview of the CO-OP program is available on the HHS website.
Medicare Part D Coverage Gap “donut hole” Rebate
The Affordable Care Act provides a one-time $250 rebate in 2010 to assist Medicare Part D recipients who have reached their Medicare drug plan’s coverage gap. This payment is not taxable. This payment is not made by the IRS. More information can be found at http://www.medicare.gov.
Additional Requirements for Tax-Exempt Hospitals
The Affordable Care Act added new requirements for charitable hospitals (see Notice 2010-39 and Notice 2011-52). On June 26, 2012, the IRS published proposed regulations that provide information on the requirements for charitable hospitals relating to financial assistance and emergency medical care policies, charges for emergency or medically necessary care provided to individuals eligible for financial assistance, and billing and collections. On April 5, 2013, the IRS published proposed regulations on the requirement that charitable hospitals conduct community health needs assessments (CHNAs) and adopt implementation strategies at least once every three years. These proposed regulations also discuss the related excise tax and reporting requirements for charitable hospitals and the consequences for failure to satisfy the section 501(r) requirements. On August 15, 2013, the IRS published temporary regulations and proposed regulations providing information on which form to use when making an excise tax payment for failure to meet the CHNA requirements and the due date for filing the form. Notice 2014-2 confirms that hospital organizations can rely on proposed regulations under section 501(r) of the Internal Revenue Code published on June 26, 2012 and April 5, 2013, pending the publication of final regulations or other applicable guidance. Notice 2014-3 contains a proposed revenue procedure that provides correction and disclosure procedures under which certain failures to meet the requirements of section 501(r) will be excused.
Annual Fee on Branded Prescription Pharmaceutical Manufacturers and Importers
The Affordable Care Act created an annual fee payable beginning in 2011 by certain manufacturers and importers of brand name pharmaceuticals. On July 24, 2014, the IRS issued final and temporary regulations on the branded prescription drug fee. The regulations describe the rules related to the fee, including how it is computed and how it is paid. Also on July 24, 2014, the IRS issued Notice 2014-42, which provides additional guidance on the branded prescription drug fee for the 2015 fee year and subsequent fee years. For information on the fee for the 2012, 2013 and 2014 fee years, see Notice 2011-92 , Notice 2012-74 and Notice 2013-51. 
.
For additional information, visit our Affordable Care Act Provision 9008 Branded Prescription Drug Fee page.
Modification of Section 833 Treatment of Certain Health Organizations.
.
The Affordable Care Act amended section 833 of the Code, which provides special rules for the taxation of Blue Cross and Blue Shield organizations and certain other organizations that provide health insurance. IRS Notice 2010-79 provides transitional relief and interim guidance on the computation of an organization’s taxpayer’s Medical Loss Ratio (MLR) for purposes of section 833, the consequences of nonapplication and changes in accounting method. Notice 2011-04 provides additional information and the procedures for qualifying organizations to obtain automatic consent to change its method of accounting for unearned premiums. Notice 2012-37 extends the transitional relief and interim guidance provided in Notice 2010-79 for another year to any taxable year beginning in 2012 and the first taxable year beginning after Dec. 31, 2012. 
.
On January 6, 2014, the IRS issued final regulations that describe how the MLR for purposes of section 833 is computed.
Limitation on Deduction for Compensation Paid by Certain Health Insurance Providers (amended section 162(m)).
.
The Affordable Care Act amended section 162(m) of the Code to limit the compensation deduction available to certain health insurance providers. The amendment goes into effect for taxable years beginning after Dec. 31, 2012, but may affect deferred compensation attributable to services performed in a taxable year beginning after Dec. 31, 2009. On Sept. 18, 2014, the Treasury Department and IRS issued final regulations on this provision. 
Employer Shared Responsibility Payment
The Affordable Care Act establishes that certain employers must offer health coverage to their full-time employees or a shared responsibility payment may apply. On Feb. 10, 2014, the Department of the Treasury and the IRS issued final regulations on the Employer Shared Responsibility provisions. For additional information on the Employer Shared Responsibility provisions and the proposed regulations, see our questions and answers. On July 9, 2013, the Department of the Treasury and the IRS announced transition relief from the Employer Shared Responsibility provisions for 2014. For more information, please see Notice 2013-45. For additional transition relief generally applicable to 2015, see the preamble to the final regulations. On Sept. 18, 2014, the Department of the Treasury and the IRS issued Notice 2014-49, which provides guidance on how to apply the look-back measurement method in situations in which the measurement period applicable to an employee changes. 
Patient-Centered Outcomes Research Institute Fee
The Affordable Care Act established the Patient-Centered Outcomes Research Institute. Funded by the Patient-Centered Outcomes Research Trust Fund, the institute will help patients, clinicians, purchasers and policy-makers make informed health decisions by advancing clinical effectiveness research. The trust fund will be funded in part by fees paid by issuers of certain health insurance policies and sponsors of certain self-insured health plans.

The IRS and the Department of the Treasury have issued final regulations (PDF) on this fee. On Sept. 18, 2014, the IRS issued Notice 2014-56, which establishes the applicable dollar amount for policy and plan years ending after Sept. 30, 2014, and before Oct. 1, 2015. Additional information on the fee is available on the PCORI page and in our questions and answers and chart summary. Form 720, Quarterly Federal Excise Tax Return, was revised to provide for the reporting and payment of the PCORI fee. Although Form 720 is a quarterly return, for PCORI, Form 720 is filed annually only, by July 31. If for any reason you need to make corrections after filing your annual Form 720 for PCORI, write “Amended PCORI” at the top of the second filing.
Retiree Drug Subsidies
Under § 139A of the Internal Revenue Code, certain special subsidy payments for retiree drug coverage made under the Social Security Act  are not included in the gross income of plan sponsors. Plan sponsors receive these retiree drug subsidy payments based on the allowable retiree costs for certain qualified retiree prescription drug plans. For taxable years beginning on or after Jan. 1, 2013, new statutory rules affect the ability of plan sponsors to deduct costs that are reimbursed through these subsidies. See our questions and answers for more information.
.

Page Last Reviewed or Updated: 10-Dec-2014.
.
.
.
.
.
.
.
.
.
.

============================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.
.
DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.
.
image

.

.

.

.

.

Watch Income Tax English Translator George Carlin Explain “How to Read and Apply Complex Govt. Tax Rules into Plane Everyday English That Everyone Can Understand” on Online Tax News Report – RexTube.
.
image
Federal Baffel-Gab Verbal Obsfucation Training Using Flying Vocabulary Examples. FAA and IRS Butchering English Language Made Easy. [Live from NYC ’92]: http://youtu.be/46fOtLfYC4Q
.

image
.
.
image
.
.
image
.
.
.
image

.
.
.
image

.
.
image
.
.
image
.
.
image

.
.
image

.
.
image
.
.
image

image
.
.
image

.
.
image
.
.

.
.
.
image

.
.
.
image

.
.
.
.
.

====================================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.
.
DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.
.

.

.

.

.

.
.
.
.
.

.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.

.

image
.
Watch IRS Commissioner: What the IRS is Doing to Bring Propaganda Education To Taxpayers Before All the Whining About the Affordable Care Act (O. B. Care) Hits the Public in the Face on Your 2014 Income Tax Returns from Online Tax News Report, TaxTube…:
image

http://youtu.be/PbbepRPHtMs
.


.
When the public finally understands the penalties, red tape entanglements, that IRS will be in charge of their medical services, and that the new system is designed to hide the fact the Feds are bankrupting Medicare and hiding it under a new program where everyone has to pay for medicare a second time, you are going to hear the complaints grow exponentially.
.
image

..
image

.
You can blame the legislators, but not the Commissioner of the IRS, because he had nothing to do with the statute being enacted into law.
.
.
.
.

.
Ladies and gentlemen, introducing…
image
The Honorable, John Koskinen, Commissioner of the United States of America, Internal Revenue Service.

John Koskinen is the 48th IRS Commissioner. As Commissioner, he presides over the nation’s tax system, which collects approximately $2.4 trillion in tax revenue each year. This revenue funds most government operations and public services. Mr. Koskinen manages an agency of about 90,000 employees and a budget of approximately $11 billion.

In his role leading the IRS, Mr. Koskinen is working to ensure that the agency maintains an appropriate balance between taxpayer service and tax enforcement and administers the tax code with fairness and integrity.

Prior to his appointment, Mr. Koskinen served as the non-executive chairman of Freddie Mac from 2008 to 2012 and its acting chief executive officer in 2009. Previously, Mr. Koskinen served as President of the U.S. Soccer Foundation, Deputy Mayor and City Administrator of Washington D.C., Assistant to the President and Chair of the President’s Council on Year 2000 Conversion and Deputy Director for Management at the Office of Management and Budget. Mr. Koskinen also spent 21 years in the private sector in various leadership positions with the Palmieri Company, including President and Chief Executive Officer, helping to turn around large, troubled organizations. He began his career clerking for Chief Judge David L. Bazelon of the DC Circuit Court of Appeals in 1965, practiced law with the firm of Gibson, Dunn and Crutcher and served as Assistant to the Deputy Executive Director of the National Advisory Commission on Civil Disorders, also known as the Kerner Commission. Mr. Koskinen also served as Legislative Assistant to New York Mayor John Lindsay and Administrative Assistant to Sen. Abraham Ribicoff of Connecticut.

Mr. Koskinen holds a Law Degree from Yale University School of Law and a Bachelor’s Degree from Duke University. He also studied International Law for one year in Cambridge, England. He and his wife Patricia have two grown children and live in Washington, DC.

.
.
.
.
.
.

====================================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.
.
DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.
.

.

.

.
image

.
.
.
image

.

.

Watch: Tax Problems for President J. C. Junker (E.U. Commission) One Week After Taking Office. He Ran Tax Haven Luxembourg For Years and is Now Supposed To Combat Tax Havens for Europe from Tax News Online Report on RexTube.

image

Tax haven Luxembourg: Juncker in a bind – http://dw.de/p/1DiYV

INTERNATIONAL TAXATION EU

Luxembourg tax deals with global firms under fire after news leaks.

Luxembourg is under fire after leaked documents revealed its huge tax avoidance deals with hundreds of top global firms, putting its former premier Jean-Claude Juncker under the spotlight in his first week as EU commission chief.

Household names such as Pepsi, IKEA and Deutsche Bank were among companies named by the US-based International Consortium of Investigative Journalists (ICIJ) following a six-month investigation of 28,000 leaked documents.

Billions of dollars were funnelled through the tiny European duchy of Luxembourg thanks to complex financial structures that allowed companies to slash their tax liabilities, depriving hard-up governments around the world of vital revenue.
image

The revelation comes at a particularly awkward moment for Juncker, who took office Saturday as head of the EU’s executive arm after 19 years as Luxembourg prime minister, during which many of the deals were made.

Luxembourg’s current prime minister, Xavier Bettel, insisted Thursday that the sweetheart tax deals were legal. “I want to underline that these (tax) rulings conform to international laws,” Bettel said.

Juncker presided over the tax affairs of Luxembourg for over two decades, guiding the country from being a sleepy European backwater to a prized destination where hundreds of the world’s biggest companies now base their affairs.
image

Watch: Why Luxembourg is the best place to invest offshore on RexTube…: http://youtu.be/Zu2TEuCWGh0

.

Juncker won’t influence probe

Juncker’s spokesman said the European Commission was already investigating whether Luxembourg’s tax deals with US Internet shopping giant Amazon and the financial arm of Italian carmaker Fiat amounted to illegal state aid.
image

“If the decision is negative, Luxembourg will have to take corrective actions,” spokesman Margaritis Schinas explained.

On Wednesday, asked about the tax policies he once led, Juncker told journalists that he “had his ideas” about the matter but would do nothing to affect the EU’s investigation “as this would be indecent”.

In its investigation, the ICIJ found that global accounting giant PricewaterhouseCoopers had helped multinationals in question secure at least 548 tax rulings in Luxembourg between 2002 and 2010.

The documents uncovered details of so-called Advance Tax Agreements — pre-negotiated deals which set out how companies will be taxed.

“It’s like taking your tax plan to the government and getting it blessed ahead of time,” the ICIJ  quoted Connecticut School of Law tax expert Richard Pomp as saying.

The controversial practice, also called “tax rulings”, is the subject of the EU’s probes into Luxembourg’s deals with Amazon and Fiat.

The EU has power over member states tax affairs as such, but it can probe whether they amount to illegal state aid, which breaches the 28-nation bloc’s rules on free trade and competition.
image

Similar cases have been opened against Ireland for tax deals with tech giant Apple and the Netherlands with coffee chain Starbucks.

======================
Watch: European Parliament Calls for a Europe-Wide Tax Haven Crack Down on Tax News Online Report…http://youtu.be/-yyrnYfLvb8
.

.
There are two problems with that objective.

1. The EU Parliament can not introduce bills to be voted on to become law. Only the EU Commission can introduce bills so that the EU Parliament can vote them into law.
2. The new EU Commission President is Jean-Claude Junker who has left being President of tax haven Luxembourg for many years. Good luck with that objective parliamentarians.

——————————————
[Editor Observation] It was noted that Martin Schulz was re-elected President of the European Parliament. MEPs re-elected Martin Schulz as President of the European Parliament on Tuesday morning for another two and a half year term.
image

But… Martin Schulz is a German member of the communist party, and he had tried to become the president of the E.U. Commission and Junker won the election. It appears that Junker may be pro-business and economic growth. Communist platforms in the past have been anti-business and in favor of the government owning the means of production. Now when the parliamentarians call for and end to the law abiding countries and business owners that are following the law, are they really saying the independent countries should not have any rights against an overbearing EU communust leaning government. And are they really trying to drive businesses out of the EU because it cost too much to pay for wealth distributing and less than productive socialists who are always trying to take and spend someone elses money for what think are better than allowing private property rights. It is possible that Martin Scholz was behind the Luxemburg press leaks as part of a sour grapes smear campaign because Mr. Scholz was not picked for the EU Commision presidency. Of course this hypothsis is speculative, but very plausable indeed.
——————————–
Now on with the news.

=======================
.
EU TAX HAVENS MEET WITH PUBLIC OBJECTION, EVEN IF NOT BREAKING THE LAW on Tax News Online Report_Tube.
Hash Tag=
“#starbucketchallenge”
.
: http://youtu.be/xi-UM3qgBJc
.

.
image

======================
.
Warch: Observers call EU for fiscal war against tax havens on Tax News Online Report. : http://youtu.be/BXxJiN8bNQA
.

.
image
.
image

=====================
.
.
<p align="center"=========================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.
.
DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.
.
.

.

====================================================

.
.

.

.

.

.

.

.

.

.

.

.
.
.
.

.
.
.
.
.

Watch: “IRS Commissioner-Chief: What to Expect at Tax Time With the Affordable Care Act Changes to the 2014 IRS Tax Forms” on RexTube.
image

image

.
: http://youtu.be/j-MyJ4Z-tGs
.
.

.
.
.
Watch: IRS Commissioner: On the “Individual Shared Responsibilitity Credit”, (Afordable Care Act-Rewards and Tax Penalties) on RexTube.
image

http://youtu.be/njOXzasLv1Q
.

.
.
image

image

.
Watch: IRS Commissioner: Premium Tax Credit-Changes That Take Effect on your 2014 Income Tax Returns on RexTube.…: http://youtu.be/dQTpC9ALQSg
.
.

.
.
image

.
.
.
image

.
.
.
.
.
DISCLAIMER: The sponsors and editors of this privately owned website are not goverment employees and do not represent nor speak for any governmental agency.
.
.
.
.
.
.
.
.
.
.
.

====================================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.

.

.

.

.

.

.

.
Rex Crandell, CPA says: Watch “S-Corp, C-Corp, or LLC – Which is better for you? on RexTube.
.
image

.
S-Corp or LLC – Which is Better? Of course, it depends what you want that little ‘corporate puppy’ to do for you.
.
As a California resident, never form an out of state corporation or LLC then bring it back to California without properly registering to do business in California. You will ‘pay the piper’ dearly for that nieve action.
.

.
======================

After you get done digesting the differences between a C type corporation and an S type corporation, I suggest that you next evaluate how a California Limited Liability Company (LLC) would benefit you business.plan.
.
And never call a LLC, Limited Liability ‘Company’ by the name Limited Liability ‘Corporation’ by mistake or everyone will immediately that you are a ‘dufus’ and you know how embarrasing that would be.
.
.
Make sure your business entity plan is water proof. You never know what might happen next. You might become filthy rich and be the next Bill Gates or Sir Richard Branson or Mark Suckerberg.

image

====================
.
LLC, S Corp and C Corporation: Differences Between the Three on RexTube. : http://youtu.be/NWCby9obirA
.
.

.
.
=======================
image

.
.
.
.
.
image

.
.
.
Stay focused on your business plan, not vearing to the left or right of course or you might experience some unintended consequences.
.
.
image

.
.
You can kick up your heals and have a goofy swell time with your buddies after you make your first billion dollars or two. But do not let it go to your head. Always keep honest and accurate business records. It is also a mandatory good idea to accurately report every dime of income you receive and only claim legitimate business expenses that will hold up in court if contested.
Do not play games with you tax reporting. Just do it right and save your creativity for your products or services that will generate long term satisfied costomers who insist on doing business with you because they can always rely on you and can always trust in you. It is better to sleep well at night so you can focus your energies on you business plans and opportunities.
Honest, hardworking business people do much better in the long run compared to people that do not place a high value on honesty and ethical conduct. “Cheaters never prosper in the long run”. If it sounds too good to be true, guess what? It’s likely a scam that you should stay away from.
.
.

image

.
.
.
image

.
.
.

========================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.

.

.

.

.

.

.

.

.
Rex Crandell, CPA says
Watch: What if you can not pay the tax you owe???….on RexTube…
.

What do you really do If You Can’t Pay Your Taxes on Time, Panic?? Nope. Read on.

If you find you owe more than you can pay with your tax return, don’t panic. Make sure to file on time. That way you won’t have a penalty for “filing late”, which is outrageously abusive as far as penalties go. Like IRS has never been late in doing things.

Here is what to do if you can’t pay all your taxes by the due date.

1. File on time and pay as much as you can.  File on time to avoid a late filing penalty. Pay as much as you can to reduce interest charges and a late payment penalty. You can pay online, by phone, or by check or money order. If you file on time you avoid the failure to file penalty of 5% of the tax due every month you are late to a maximum of 25% late file penalry plus interest called a failure to pay penalty. So it is more important to file you taxes on time even if you do not pay anything at the time you send in your taxes.

2. Get a loan or use a credit card to pay your tax. The interest and fees charged by a bank or credit card company may be less than IRS interest and penalties.
image

3. Use the Online Payment Agreement tool. You don’t need to wait for IRS to send you a bill before you ask for a payment plan. The IRS will gladly suck your monthly payment directly out of your bank account if you grant them permission to do so. The best way is to use the Online Payment Agreement tool on EFTPS.GOV to make each payment when you are ready. You can also file Form 9465, Installment Agreement Request, with your tax return. You can even set up a direct debit agreement (i.e. Sucking $ out of your bank account on a regular basis). With this type of payment plan, you won’t have to write a check and mail it on time each month. It also means you won’t miss payments that could lead to more penalties.
image

4. Don’t ignore a tax bill.  If you get a bill, don’t ignore it.  The IRS may take collection action if you ignore the bill. Contact the your tax advisor right away to talk about your alternatives. If you are suffering a financial hardship, the IRS will work with you.

In short, remember to file on time. Pay as much as you can by the tax deadline and pay the rest as soon as you can. Ask your tax advisor about more about the IRS collection process.
image

.

.
.
================
.
A sign of the times.

Watch: ASL: Owe Taxes But Can’t Pay (Captions & Audio): on REXTube. http://youtu.be/S87keLbQwWE
.

.
================
.
.
Watch:
ASL: IRS Tax Payment Options (Captions & Audio) on Rex Crandell, CPA_Tube. http://youtu.be/tJRn-OegC0M
.
.

.

.
================

.
image

Watch “IRS Tax Payment Options” on RexTube

IRS Tax Payment Options: http://youtu.be/Cp4FcCGeHL4


===============

.
image

===================
.
Asi es posible para límite sus paga mensuales. No se conforme por menos.
.
Vea esa cortometraje para saber sus optiones quando tiene deudas con el IRS atravesando RexTube.

Opciones de Pago del IRS::http://youtu.be/Q3re5nnVFI8
.
.

======================
.
.
Watch “Fecha Límite de Impuestos – 15 de octubre de 2014” on RexTube
.
Fecha Límite de Impuestos – 15 de octubre de 2014: http://youtu.be/mdbPqDmAT_M
.
.

.

==================

.
.

.

========================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.

.

.

.

.

.

.

.

.

.

BE SURE YOU UNDERSTAND ALL THE TAX RULES.
=====================
Tax Tips on Making IRA Contributions
____________________________
If you made IRA contributions or you’re thinking of making them, you may have questions about IRAs and your taxes. Here are some important tips from the IRS about saving for retirement using an IRA.

1. You must be under age 70 1/2 at the end of the tax year in order to contribute to a traditional IRA. There is no age limit to contribute to a Roth IRA.

2. You must have taxable compensation to contribute to an IRA. This includes income from wages and salaries and net self-employment income. It also includes tips, commissions, bonuses and alimony. If you’re married and file a joint return, generally only one spouse needs to have compensation.

3. You can contribute to an IRA at any time during the year. To count for 2013, you must make all contributions by the due date of your tax return. This does not include extensions. That means you usually must contribute by April 15, 2014. If you contribute between Jan. 1 and April 15, make sure your plan sponsor actually applies your investment payment it to the right year that you wanted it to be applied. Keep all the investment paperwork and broker instructions to prove your agreement with your IRA sponsor for every transaction. It might come in handy someday.
==================
Watch “Understanding Individual Retirement Accounts – IRA…” on RexTube.


==================

4. In general, the most you can contribute to your IRA for 2013 is the smaller of either your taxable compensation for the year or $5,500.
.
If you were age 50 or older at the end of 2013, the maximum you can contribute increases to $6,500.
.
.
===================
Watch: Who inherits my Individual Retirement Account IRA on RexTube.

http://youtu.be/ag6aytn2yjQ
.
.

===================
.
.
5. You normally will not pay income tax on funds in your traditional IRA until you start taking distributions from it. You must start taking regular IRA distributions after you pass the age of 70.5 years young.

WARNING:
If you do not take the Required Minimum Distribution (also called the ‘RMD’ ) every year after you pass age 70.5 the you will face huge penalties in the amount of 50% of the RMD you should have taken out as a taxable distribution each year.

6. Qualified distributions from a Roth IRA are tax-free. Qualified means:
A) That you first contributed money to this Roth IRA account a full five years before you withdrew the money out of the account and
B) You are over age 59.5 at the time of the distribution.
.
You report distributions from Roth IRA accounts on IRS Form 8606, page 2.
.
7. The same rules apply to a Roth IRA account that also apply to a tradional IRA account except that you can never claim a tax deduction for contributions to a Roth IRA account. The first benefit of putting money in a Roth IRA account is that you do not pay tax on the annual income earned in the account.
.
Unlike a traditional IRA, you can never get a current yeat tax deduction when you make contributions to a Roth IRA account.
.
Then after keeping the money in the Roth IRS longer than the five years discussed above, you dump out you little Roth IRA “piggy bank” and not pay any tax on your gains. .
.
That is until Congress changes the rules. Remember you do not get a tax deduction for your payments to your Social Security Account either. And when Social Security started it was also promised that it would not be taxable because you were only getting back your own money that was never taken as a tax deduction in prior years.
.
====================
Watch “Who the heck inherits my Individual Retirement Account IRA?…” on RexTube


==================
.
8. Well the taxpayers were tricked with Social Security because a good portion is often treated as taxable income when received now days.
.

9. You may be able to deduct some or all of your contributions to your traditional IRA. Use the worksheets in the Form 1040 instructions to figure the amount that you can deduct.
.
==============
. Watch “What is an IRA? Traditional IRA vs Roth IRA vs 40…” on RexTube.

A 200 video set on IRA accounts.
.
http://youtu.be/xDIu7bdZuko
.

===============
.
.
10. You report penalties on IRA distributions is you mane a traditional IRA distribution before reaching age 59.5 years young.
.
11. One.of the biggest financial mistakes you can make is to take a premature distribution ( before age 59.5) from an IRA or a company pension plan.
.
Often the premature distribution is taken to buy a house, to pay off bills, or to cover unexpected emergencies. Big mistake.
Pension advisors frequently give tax advise in this area by saying that there is a 10% penalty for an early distribution. So the person calculates they can handle that 10% penalty. This is false logic. What really happens is first tou get the 10% penalty on IRS Form 5329. Then the State of California gives you a 2.5% penalty. Then the distribution goes into ordinary income and lets say you are in the 30% tax bracket. Then California also taxes the distribution as regular income of lets say 6% to 8%.

Where are now? Has anyone been keeping a running total of the tax.percentages for this early distribution?

Well the total loss of funds from a premature IRA or pension distribution is a loss of between 42% to 48% of every dollar you took out. Bad idea, Aye?

12. Then the money is all used up before you file your tax return. Then your tax advisor tells you that you owe more tax than you ever dreamed possible. Gee, how will you ever pay that huge tax debt off now? Your between a rock and a hard place. Don’t expect much sympathy from your friends at IRS. They will gladly garnish you paycheck and empty your bank ac ount after you have written a batch of checks and mailed them out. I guess the phrase ‘ oooops’ is too mild for this situation. yep.

13.  If you contribute to an IRA you may also qualify for the Saver’s Credit. The credit can reduce your taxes up to $2,000 if you file a joint return. Use Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit. You can file Form 1040A or 1040 to claim the Saver’s Credit.

14. The Savers Credit is phased out when Adjusted Gross Income is more than $59,000. For single individuals the credit phased out when Adjusted Gross Income exceeds $29,500. These numbers are about half of the federal poverty rate. So the credit is illusory because if you qualify based on your income then you are also needing to use all your income for survival, food, clothing, shelter and transportation. Like many government programs that are touted by government talking heads but you are never going to see any benefit because it was designed for people that do not have the funds to take advantage of the Savers Credit. It is a sad legislative trick to tease the poor with immaginary benefits.

.
.
.
.
.

=======================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.

.

.

.

.

.

.

Watch: How To Move the APRIL 15th Income Tax Filing Deadline to October 15th (Without Getting Any Collateral Damages From Your Friends at IRS) on RexCrandell-CPA-Tube.
.
Here you will find 11 short videos on the subject to pick and choose from.

Simple instructions are included on what to do when you want to move the April 15th tax filing deadline out until October 15th.

You will find blank Extension Forms that you can download and the forms are ‘fillabe’ you can fill out the forms on your screen to print out and file with the government.

 

INSTRUCTIONS FOR FILING TAX EXTENSION FORMS

Here are the forms necessary for you to request an extension of time to file your Federal income tax return. Please be aware that an extension of time to file the tax return is NOT an extension of time to pay money for tax that is ultimately due on the tax forms. You must make an estimate of your tax for the year and pay any tax due along with the extension form when you file it.

Fill in the blanks (if any) on the enclosed Form 4868, showing your estimated income and withholding, plus any additional payments for the year. There are substantial penalties possible if the blanks on your extension form are filled out incorrectly. Enclose a check for the balance due (if any) made payable to the “United States Treasury Dept.”, and mail the check and form to: IRS at P O Box 7122, San Francisco, CA 94120—7122 no later than April 15th. If you are not sending a check with the form then file it with: IRS   Ogden, Utah 84201 (The Post Knows the Street Address in Ogden, UT). We will not file this form for you, then you will know for sure that you took care of the task. You must file a Federal extension even if you have no tax dollars due in order to avoid a $100 penalty.  If you are making estimated tax payments for the current year, you can include a payment with your extension form, or pay with a separate current year voucher before April 15th.

 

California is granting a paperless automatic extension to file your return on or before October 15th. However, to avoid late payment penalties, you must pay 100% of your tax liability by April 15th. If you can’t file by April 15th but still owe additional tax you must use the enclosed Form 3519 to mail your payment by April 15th. Do not mail the California form (or anything else) unless you owe more tax (money talks or California Franchise Tax Board does not want to hear from you).

If you under-estimate the amount of tax you owe with your extension, you will have to pay interest on the unpaid amount.  If you do not pay at least 90% of your total Federal tax or 100% of your total California tax, your extensions will be invalidated, and you may be liable for a failure-to-file penalty of 5% of the tax due for each month your returns are late (up to 25% of the tax that was not paid on time), in addition to the interest.

Make sure your extension and/or payment voucher are filed on time and with the correct payment. We will not be responsible for any extension penalties or interest that you incur. If we fill out the forms for you, we will rely on estimates of income provided by you, and we endeavor to make the estimated tax as accurate as possible. We are trying to help you pay the lowest possible tax.

Your Federal extension is valid for six months from April 15th, and the California extension is valid for six months. You are responsible for seeing that your returns are filed prior to the extension deadlines.  We prefer to fill out the extension forms for you after completing your tax interview appointment. If there is data needed to complete your return you will need to estimate the missing data.

After you have filed your extensions, please mail or fax us a signed completed copy of the following confirmation form letter. We can then post the transaction to your completed tax forms, if they have not be completed prior to receipt of your confirmation letter. Call our office if you have any questions or if you would like to schedule an appointment.

Very truly yours,

/s/ Rex L. Crandell

Rex L. Crandell, CPA,
An Accountancy Corporation

1 800 464-6595
RexCrandell@astound.net

===================================================

                                              Memorandum About Extension Forms

[CONFIRMATION LETTER THAT CLIENT DID FILE EXTENSION REQUEST FORMS AND AMOUNT PAID]

Today’s date: ____________

TO:  Rex Crandell, CPA Firm

P O Box  30305     Walnut Creek, CA. 94598       Fax      925 934-6325

Email: RexCrandell@astound.net
Dear Mr. Crandell,

We filed our request for an extension of time to file the tax forms with the Internal Revenue Service and State Franchise Tax Board on ______________ (date).   We paid the amount of $___________ to the IRS, and the amount of $____________ to the State Franchise Tax Board on the same day. We understand that the extension of time to file request forms are to request an extended due date to file the tax returns until October 15th, and the forms do not serve to extend the time we have to pay any tax that we may owe the government.

We wanted to give you this information in writing because we are aware that your tax office is extremely busy at this time of year, so we did not think it was a good idea to give you this information verbally on the phone.   However, if our tax returns have not already been processed by your office, then please add this information to the current year tax processing information before completion. We are aware that if this conformation form is not sent back to Rex Crandell’s office then our completed income tax forms will not show that we have paid any dollar amounts with the Extension of Time to File Request forms that we filed with the government. Then the government will send an adjustment letter to us when they notice that we actually did send money with request to extend the April tax filing deadline.

Very truly yours,

Signed: X____________________________

                                     Client Signature

Joint Extension Request

==========================

CLICK THE FOLLOWING LINK TO DOWNLOAD A FREE COPY OF THE FEDERAL EXTENSION FORM

IRS Form 4868:

IRS Form 4868~EXTENSION of TIME to FILE REQUEST FORM & Related Instructions

PDF rlc 03APR14

 ======================

 

IRS Form 4868~EXTENSION + Instructions to Post rlc 04APR14~JPEG   #   _Page_1

====================================================

CLICK THE FOLLOWING LINK TO DOWNLOAD A FREE COPY OF THE CALIFORNIA EXTENSION FORM

CA FTB 3519:

CA FTB Form 3519~EXTENSION OF TIME TO FILE REQUEST FORM & INSTRUCTIONS rlc 03APR14 PDF 1pp

========================== 

CA FTB Form 3519~EXTENSION OF TIME TO FILE REQUEST FORM & INSTRUCTIONS rlc 03APR14  JPEG     1pp

====================================================

 

.

Why get an extension of time to file your tax forms
and move the April 15th tax filing deadline
for individuals forward to October 15 ?

 
There many benefits and advantages of getting an Extention of Time to File Form approved by the government as noted in the following stories.
.
.

.

.

Watch “Tax Season – for a CPA on RexTube.   


A window into the exciting world of a CPA and the annual roller coaster ride called “The Busy Tax Season”.  Just marvelous.
Just think if all the work you did all year was all due on April 15th.
Do you think that might cause a little bit of stress?

I have heard of several stories about CPA’s having fatal heart attacks during the busy season, not good, to be sure.

Tax Season – for a CPA: http://youtu.be/i7HsjvHKJIM

.

.          Just “sign” right here.

IRS.  ASL EXTENTION OF TIME TO FILE PROCEDURES.

Like… “Peace, Love & Hippy Talk Lady”.

http://youtu.be/8C_dsB7YvdY

 

=================

A cheerful explanation about the process of obtaining an Extension of Time To File from the IRS.
Watch “How to File For a Tax Extension” on Rex&YouTube

http://youtu.be/MvGd_cVHPMo

========================

Watch “Does the extension extend the time for me to pay …” on YouTube  ~No Way Jose~

http://youtu.be/Miit1MZQq2Y

 

.===========

The following video is from laws.com

Watch “Learn How to Fill the Form 4868 Application for E…” on YouTube

http://youtu.be/l4hRX4H3qKk

========================

 

THE FOLLOWING IS A “NO TALKIE” VIDEO SHOWING INFORMATION  SHEETS WITH MUSIC.

Watch “Filing an Extension for 2012” on YouTube

Filing an Extension for 2012: http://youtu.be/Sb52J__GApQ

====================================

.

Watch “Oct 15 Tax Deadline” on RexTube.

An IRS Employee tells it like it is.
Why do all IRS employees have only one name?
Are trying to be like ‘Madonna’ or ‘Cher’ ??

Oct 15 Tax Deadline:
http://youtu.be/ZTvDVNKXII0

============================================

Watch “2012 Tax Extensions Due Soon” on YouTube

http://youtu.be/Jr5Rr_AhfMk

Better hurry, if you are going to take care if this before April 15, 2013.  In fact you might even need a time machine.  Well, how about ‘back to the future’?

====================

 

I do not know anything about the process of hiring a ( here to for) unkown website in cyberspace (without a street address in any country) service provider to prepare and file your extension of time to file request forms with the government. I did not know that these companies even existed. I did notice that none of them that I came across said anything about helping people prepare and file the California’s FTB Form 3519, for those millions of people who are California residents or that work and pay taxes in California.

A few questions come to my mind about using a web only based tax extention preparation and filing service;
.
  1)  Why not just buy a stamp and mail it to the tax department?  
.
2) If you want proof thay the IRS received the form you mailed them, why not just pay a few bucks more to send it ‘Certified  Mail’ with Return Receipt Requested.
.
I have read several Tax Court cases discussing the valuable proof evidence that Certified Mail provides. After all, the US Postal Service and the Internal Revenue Service are both agencies of the USA federal government.
.
By the way, the Delivery Confirmation service that the US Post Office provides does NOT provide legal proof in court when defending against IRS filling penalties.
.
3) How can you be certain that the alleged vendor to file your extensions is legitimate?  By this I mean would you give a total stranger on the street your Social Security Number, Date of Birth, Address, Kids Names, and you Credit Card information?   What if the web site was a trickster outfit based in Bulgaria that was into perpetrating the identity theft game ( I mean crime)? 
.
I think it might be less risky to avoid cyberspace and just mail your tax extensions yourself, in an envelope, with a US Postage stamp on the envelope. Oh, that is boringly low tech. So what’s the downside to low tech that actually work, any way?
.

Having said that, I do not know anything about any of the vendors in this report. (other than IRS which I do not include in the definition of vendors because consumers do not buy ‘services’ from the IRS). 
.
I have never met these vendors and do not have anything adverse or disparaging to say about someone or any company that I do not even know.

=====================

.

Watch “Need More Time To File Your tax Return?” on RexTube

Need More Time To File Your tax Return?:
http://youtu.be/PViCvTf5JKs

.

===============================

Watch “What is an IRS Tax Extension?” on YouTube

What is an IRS Tax Extension?: http://youtu.be/t9Yemg-jJD4

===============================

.
The following video is more technical than the previous videos. It goes into more depth than you may really want to know about the actual mathematical computations in filling out the infamous ‘IRS Form 4868’, little puppy. It is 17″ minutes long and a bit dry so, you might want to get a glass of water first (or a beer) before you start watching this one.

Watch “How to File Tax Return Extension Form 4868″ on YouTube

How to File Tax Return Extension Form 4868:

http://youtu.be/kDO07dyzHM8

=====================
Watch “Fecha Límite de Impuestos – 15 de octubre de 2014” on REXTube
.
Fecha Límite de Impuestos – 15 de octubre de 2014: http://youtu.be/mdbPqDmAT_M
.
.

.
=====================
.
A real intelligent dude says:

wpid-einstein-tax-quote.jpg
.
.

.

 

========================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY.
IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.

.

.

.

.

.

.

.

 

 

 

 

 

 

.

.

.

.

.

.

.

.

 

 

.

.

.

.

Well I don’t have a witness, so I can’t prove it.

….   But, that’s my story, and I’m stickin’ to it.

.

.
======================
======================
.es

Lo Que Debe Saber Si Necesita Más Tiempo para Presentar su Declaración de Impuestos

Consejo Tributario

El 15 de abril, la fecha límite para presentar sus impuestos y está a la vuelta de la esquina. ¿Qué pasa si usted no puede presentar su declaración antes de la fecha límite? Si necesita más tiempo, puede obtener una prórroga automática de seis meses del IRS. No tiene que explicar el por qué está pidiendo más tiempo. Aquí hay cinco datos importantes que debe saber sobre la presentación de una extensión:

1. Presente a tiempo, incluso si usted no puede pagar. Si completa su declaración de impuestos, pero no puede pagar los impuestos que debe, no solicite una prórroga. En su lugar, presente su declaración a tiempo y pague lo más que pueda. De esa manera usted evitará la multa por una presentación tardía, la cual es mayor a la multa por no pagar todos los impuestos a tiempo. Además, usted tieneopciones de pago. Solicite un plan de pago usando la Solilcitud Electronica de Acuerdo de Pago en Línea en IRS.gov. También puede presentar el Formulario 9465(SP), Solicitud de Acuerdo a Plazos con su declaración de impuestos. Si usted no puede hacer los pagos adeudados por una dificultad financiera (en inglés), el IRS trabajará con usted.

2. La Prórroga es para presentar no otorga más tiempo para pagar. Una prórroga para presentar le dará seis meses más para presentar su declaración de impuestos, hasta el 15 de octubre. No le da más tiempo para pagar sus impuestos. No obstante, debe estimar y pagar lo que adeuda antes del 15 de abril. Se le cobrarán intereses sobre cualquier cantidad no pagada para la fecha límite. Usted también puede pagar una multa por no pagar a tiempo.

3. Use Free File del IRS para solicitar una prórroga. Puede usar Free File del  IRS para solicitar su prórroga. Free File está disponible sólo a través de la página web IRS.gov. Usted debe presentar electrónicamente la solicitud para la medianoche del 15 de abril. Si hace su solicitud de prórroga electrónicamente, el IRS le enviara un acuse de recibo. También puede regresar a Free File en cualquier momento antes del 15 de octubre para preparar y presentar electrónicamente y gratis su declaración de impuestos.

4. Use el Formulario 4868(SP). También puede solicitar una extensión enviando por correo el Formulario 4868(SP), Solicitud de Prórroga Automática para Presentar Impuestos sobre Ingreso Personal de los Estados Unidos. Usted debe presentar este formulario al IRS antes del 15 de abril. El Formulario 4868 está disponible en IRS.gov.

No es necesario presentar un Formulario 4868 en papel si realiza un pago con la opción de pago electrónica del IRS. El IRS procesará automáticamente su extensión cuando usted paga electrónicamente. Usted puede pagar en línea o por teléfono.

5. Retiro electrónico de fondos. Si hace su presentación electrónicamente de una solicitud de prórroga, también puede pagar el saldo que adeude al autorizar un retiro electrónico de fondos de su cuenta corriente o de ahorros. Para hacer esto usted necesitará su número de ruta del banco y de la cuenta.

.

 

 

HOME OFFICE BUSINESS DEDUCTION USING THE ” SIMPLER METHOD” STARTING ON 2013 TAX RETURNS

If you work from home, you should learn the rules for how to claim the home office deduction. Starting this year, there is a simpler option to figure the deduction for business use of your home. The new option will save you time because it simplifies how you figure and claim the deduction. It will also make it easier for you to keep records. It does not change the rules for who may claim the deduction.
.

Simplified Home Office Deduction:
.

Here are ten issues related to the new simplier home office deduction.

1. Generally, in order to claim a deduction for a home office, you must use a part of your home exclusively and regularly for business purposes. Also, the part of your home used for business must be:

     A.  your principal place of business, or

      B.   a place where you meet clients or customers in the normal course of business, or

      C.   a separate structure not attached to your home. Examples might include a studio, garage, dumpster or barn.

2. If you use the actual expense method, the home office deduction includes certain costs that you paid for your home. For example, if you rent your home, part of the rent you paid could qualify. If you own your home, part of the mortgage interest, taxes and utilities you paid could qualify. The amount you can deduct usually depends on the percentage of your home used for business.

3. Beginning with 2013 tax returns, you may be able to use the simplified option to claim the home office deduction instead of claiming actual expenses. Under this method, you multiply the allowable square footage of your office by a prescribed rate of $5 / sq.ft. The maximum footage allowed is 300 square feet. The deduction limit using this method is $1,500 per year.

4. If your gross income from the business use of your home is less than your expenses, the deduction for some expenses may be limited.

5. If you are self-employed and choose the actual expense method, use Form 8829, Expenses for Business Use of Your Home, to figure the amount you can deduct. You claim your deduction on Schedule C, Profit or Loss From Business, if you use either the simplified or actual expense method.

6.  If you claim the actual home office expenses you can not use those costs to make your loss even larger.  However, with the actual home office expense method you can carry any unallowed losses foreward and deduct the expenses against future years positive net income.

7.  If you use the simple home office deduction method, it can not be used to make a current year loss even larger. 

8.  And you can NOT claim dissalowed current year expenses forward to any future year.  So the simple method has some negative features.

9.  If you use the actual home office deduction method you will have to recapture (or treat as ordinary income) any prior depreciation at the time you sell your home.  The simple method does not require recapture of depreciation on the sale of your residence.

10. If you are an employee, you must meet additional rules to claim the deduction. For example, in addition to the above tests, your business use must also be for your employer’s convenience.

Simplified Homley Office Deduction For Small Businesses.
American Sign Language ASL + Audio + Captions

http://youtu.be/ zfY9zSZw2dI
.
Why do IRS employees only have first names?
.

.

This report is provided to you at no charge by Rex Crandell, CPA.

.

.

For more on this topic, see See the tax advisor indicated below.
.

====================================

.

USA ~ EAGLE & FLAG Mov Gif 04FEB14

.

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
—————————
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
———————–

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY.
.

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.
.

.

.

.

.

.
STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.
Source: IRS Pub. 587, Business Use of Your Home.
.

TAX LAW CHANGES VIDEO FOR TAX YEAR 2013.

FOR TAX RETURNS THAT ARE DUE TO BE FILED IN 2014.

1040 TAX FORM HEADER from Lacerte 23JAN14 rlc PNG

AAA tax blog post New Tax law 17MAR14~#   1

American_flag_LCE rlc 06 21 12_PNG

AAA tax blog post New Tax law 17MAR14~#  2

59 MINUTES OF NEW TAX LAW CHANGES FOR YOUR 2013 INDIVIDUAL INCOME TAX RETURNS.

http://youtu.be/4b8jS5kSmkk
.
.

CPA img  JPEG rlc 06 29 12_B

.

.

.

.

====================================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California by calling; 1 (800) 464-6595; or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours, /s/ Rex L. Crandell Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents) 3000 Citrus Circle Suite 207 – West Wing [ Click For MAP TO OUR OFFICE] (925) 934-6320 ————————- San Francisco Office 425 Market Street 22nd Floor [ Click For MAP TO OUR OFFICE] (800) 464-6595 ————————— E-Mail: mailto:rexcrandell@astound.net Internet: http://www.rexcrandell.com Internet 2nd Web http://taxrexcrandell.com Internet 3rd Web http://estateplanningreport.wordpress.com Internet 4th Web https://taxnewsonlinereport.wordpress.com/  Skype Address rex.crandell Fax: (925) 934-6325 ———————–

All U.S. Mail items [Except if Signature is required]: P.O. Box 30305-Dept.  Tax News Blog Update Walnut Creek, California 94598-9305 United States of America .

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY. IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY. .

.

.

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

. .

.

.

.

.

. STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

__________________________________

.

.

.
YOU CAN STILL QUALIFY FOR SOME GREAT NEW TAX PENALITES.

This is the new mossy green health insurance. It’s rock solid coverage with built in tooth sharpening stones.
.
image

.
Time Running Out to Sign Up for Obamacare This Year

HealthDay /Comment /SHARE

THURSDAY, March 13, 2014 (HealthDay News) — Still thinking about signing up for insurance under the new U.S. health care law? You’d better act quickly because the enrollment deadline to obtain coverage this year is March 31.

Not only will you obtain health insurance, but if you are currently uninsured and select a marketplace health plan before the end of the month, you’ll avoid new federal tax penalties for not having coverage. This so-called individual mandate is a key feature of the Affordable Care Act, often called Obamacare.

“I think a lot of people are either hoping that the individual mandate goes away or . . . they’re just ignoring it,” said Jim Carleton, an enrollment specialist with Tri-Town Community Action Agency in Johnston, R.I., one of the state’s health insurance navigators.

With little more than two weeks left in this year’s open-enrollment period, now’s the time to get serious. Here’s what you need to know to get signed up.

The Affordable Care Act created federal and state marketplaces where consumers can shop for a health plan. These marketplaces for health plans are only available for a limited time each year.
image

If you select a plan by March 15, your coverage will begin on April 1. But if you sign up between March 16 and the end of the month, your coverage won’t kick in until May 1.

“We’re going to try to get people to enroll by the 15th at all costs because one month without coverage could be devastating to people,” said Mark Colwell, director of consumer marketing at GoHealth in Chicago, a web-based health insurance broker whose licensed advisers help consumers enroll in marketplace plans.
image

If you miss the March 31 enrollment deadline, you’ll have to wait until the next open enrollment period, beginning Nov. 15, to obtain coverage starting in 2015.

 You can sign up after March 31 if you have some special circumstance, such as a marriage, divorce or birth of a child.
image

There’s no deadline for enrolling in Medicaid or the Children’s Health Insurance Program, which are publicly funded programs for the poor.

If your income falls within a certain range, you can use federal tax credits to lower your monthly health-plan premium, but only if you buy a plan through the Affordable Care Act’s federal and state marketplaces.
image

People who earned less than 400 percent of the federal poverty level last year — $45,960 for an individual or $94,200 for a family of four — can qualify for the tax credit. The amount of assistance depends on your household income and family size.

“I actually have families that qualify for as much as a $1,200-a-month subsidy. You can’t walk away from that kind of money,” said Joe Partise, of Joe Partise CLU & Associates, a Garden Grove, Calif.-based certified insurance agent for the state health marketplace, Covered California.

What if you don’t qualify for a tax credit or it’s too small to make much difference? You may want to shop for a health plan outside of the marketplaces, Partise suggested. “There’s less steps and there’s less opportunity for things to go wrong and fall through the cracks,” he said.
image

All marketplace plans offer essentially the same core benefits. The key difference is what you’ll pay for coverage, advisers say. In addition to the monthly premium, people need to consider the annual deductible and any copayment or coinsurance amounts they’re likely to shell out.

If you choose a so-called “bronze” plan, you’ll probably have a lower premium, but you’ll pay more out of pocket for medical services. With a “gold” plan, your premium may be higher, but it will cover a greater share of the expenses when you receive services
image
.
______________________
Penalties and kick-backs for every budget. You only need be over age 18 and a USA citizen or hold a USA resident VISA. Sorry, non-resident alien persons working and living permanently in the USA can not qualify for the most extensive tax penalties available for citizens and Green Card residents. This is universal-socialism-coverage-for-all-comrads.
________________________
YOU CAN STILL QUALIFY FOR SOME GREAT NEW TAX PENALITES.
.

Time Running Out to Sign Up for Obamacare This Year

HealthDay. March 13, 2014
Comment /SHARE

Curt Fackler, a manager at Better Health Together, a community-based health-care collaborative in Spokane, Wash., likes to help people select a plan by comparing three options. “When you put them side by side, it sure makes it a lot easier,” he said.

 Some lower-income individuals and families can qualify for reduced cost-sharing amounts, but only if they choose a “silver” plan.

If seeing certain doctors or using a particular hospital is important to you, make sure your providers are in the health-plan network.

Provider networks in marketplace plans are often skimpier than those available outside of the marketplace, advisers said. The decision then becomes a trade-off.
image

Some people want a certain doctor “no matter what,” said Partise. Others say, “if it comes down to dollars and cents, I’ll find somebody new,” he explained.

 If your health-care provider is not in the plan you choose, you can go out of network for care. But depending on the plan, you’ll pay a lot more, or maybe all, of the cost.

Every state has people to assist consumers completing an application for coverage and enrolling in a health plan through the federal HealthCare.gov website or through their state health marketplace.

“We want to get people in the plan that best suits them and their budget,” said Tri-Town’s Carleton.
image

Licensed insurance agents and brokers can also help with selecting and enrolling in a plan.

 Go to localhelp.healthcare.gov and enter your city or ZIP code to find help near you. They will be happy to take your money.

Go to HealthCare.gov for more tips onchoosing a health plan.

Copyright © 2014 HealthDay. All rights reserved
image

YOU CAN STILL QUALIFY FOR SOME GREAT NEW TAX PENALITES.

In other news shared today:
.
___________________________
NPR REPORTS:
___________________________
Health Care Enrollments Up, But Still Well Short Of Goal
___________________________
Another 940,000 people signed up for health insurance in February under the Affordable Care Act, bringing the total to 4.2 million since the troubledHealthCare.gov website was launched, the Department of Health and Human Services reports. The number is still well short of the administration’s goal for March 31, when open enrollment ends.

To reach 6 million sign ups under the ACA, as the White House had hoped for, another 1.8 million people would need to enroll by the end of the month.
image
Hay. Pull my finger. €:=)

As The Associated Press reports:

“That’s way above the daily averages for January and February, which have ranged between 33,000 and 34,000. The math seems to be going against the administration.

“Officials expect the pace to pick up. The big question is whether it will be enough to make up for the technical troubles that paralyzed HealthCare.gov much of last fall and the continuing challenges for several state-sponsored websites.”

CNBC says:
image

“The new data reveals a significant fall-off from January, when about 1.1 million people enrolled during the month.
image

“Another highlight—or lowlight—of Tuesday’s enrollment report was the disclosure that the percentage of young adults signing up for Obamacare had remained at 27 percent of total sign-ups in the past two months. That’s well below the 40 percent level some health-care experts have said would ensure that premiums paid to insurance companies would more than offset benefits paid out to older, sicker enrollees.”

But CNBC quotes Timothy Jost, a law professor and health-care reform expert at Washington and Lee University, as saying that the 6 million goal is still possible.

“There’s every reason to believe that they’re right, that sign-ups are going to shoot up in March, and that they’ll get to 6 million,” Jost said.

However, 6 million is less than the original target of 7 million enrollments by the end of March.
image

The number of enrollees is just part of the overall equation – the mix is just as important. The administration wants to get enough young, relatively healthy people to enroll to offset the costs of the older, less healthy ones.

According to the report on Tuesday, cumulatively 30 percent of those who have signed up are between 55-64 years of age — the single largest group.
image

healthcare law
NPR News

©2014 NPR Public Funded.
========================

Else ware in unrelated levity:

The new government health insurance Web site is easy to use and the administration sources say everyone is having a good experience buying government mandated health insurance. The hell-th_insurance-tax has catchy little names and phrases that lulls most people into a happy alpha state in a matter of moments. That is, after the government tracking and monitoring computer data chip is permanently placed under their skin where they tell us it is out of harms way and may contain only small doses of mind control and happy Comunalism background musik to help with those darn natural emotions.
.
image

.
.
.
.
.
.

.
YOU CAN STILL QUALIFY FOR SOME GREAT NEW TAX PENALITES.
.
.
.
.

.

YOU CAN STILL QUALIFY FOR SOME GREAT NEW TAX PENALITES.

.YOU CAN STILL QUALIFY FOR SOME GREAT NEW TAX PENALITES.

.
.

Fantasy Land:
.
(Parody, not to be taken seriously) unless you want to.

.

.

.

.

.

.

.

.
Food for thought.
.
Have you thunk about it yet?
.
.
.

.

                                                                      ITS TAX TIME Y ALL _GIF  15 FEB 14     

What Should You Do When You Are Missing Your IRS
Form W-2?     Panic?              No.                 Read on…

You should receive a Form W-2, Wage and Tax Statement, from each of your employers for use in preparing your federal tax return. Employers must furnish this record of 2013 earnings and withheld taxes no later than January 31, 2014 (if mailed, allow a few days for delivery).

If you do not receive your Form W-2, contact your employer to find out if and when the W-2 was mailed. If it was mailed, it may have been returned to your employer because of an incorrect address. After contacting your employer, allow a reasonable amount of time for your employer to resend or to issue the W-2.

If you still do not receive your W-2 by February 15th, contact the IRS for assistance at 1-800-829-1040. When you call, have the following information handy:

    • the employer’s name and complete address, including zip code, and the employer’s telephone number;
    • the employer’s identification number (if known);
    • your name and address, including zip code, Social Security number, and telephone number; and
    • an estimate of the wages you earned, the federal income tax withheld, and the dates you began and ended employment.

If you misplaced your W-2, contact your employer. Your employer can replace the lost form with a “reissued statement.” Be aware that your employer is allowed to charge you a fee for providing you with a new W-2.

You still must file your tax return on time even if you do not receive your Form W-2. If you cannot get a W-2 by the tax filing deadline, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement (available on the IRS website), but it will delay any refund due while the information is verified.

If you receive a corrected W-2 after your return is filed and the information it contains does not match the income or withheld tax that you reported on your return, you must file an amended return on Form 1040X, Amended U.S. Individual Income Tax Return.

If you have questions about your Forms W-2 and 1099 or any other tax-related materials, please call or email our office.

 ====================================================

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:
Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements.  Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California by calling; 1 (800) 464-6595 Toll Free  or (925) 934 6320, Walnut Creek or (415) 982-1110, San Francisco ; and you can contact our office by e-mail at rexcrandell@astound.net

http://www.rexcrandell.com

http://www.taxrexcrandell.com

We would be happy to hear from you.

…FROM REX CRANDELL’s  OFFICE…

Please contact our office if you have any questions. 

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

 Rex at Calif CPA Society Building 2013_JPEG

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing         [ Click For MAP TO OUR OFFICE]
(925) 934-6320  
————————- 
San Francisco Office
425 Market Street
22nd Floor                               [  Click For MAP TO OUR OFFICE]
(800) 464-6595  
————————————————-
E-Mail:            mailto:rexcrandell@astound.net
Internet:           http://www.rexcrandell.com
Internet 2nd Web  http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Skype
Address     rex.crandell    
Fax:                (925) 934-6325
 ————————————————-

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept. Web New Tax News Online Report
Walnut Creek, California 94598-9305 United States of America

______________________________________________________________________

.

ITS TAX TIME Y ALL _GIF  15 FEB 14

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

.

.

.

.

ITS TAX TIME Y ALL _GIF  15 FEB 14

IRS Recently Updated the Employee Wage Withholding Tables Released for the tax year 2014.  

You may want to update your IRS Form W-4 with your employer early in the year to allow any tax increases to spread out over the entire year. This has less emotional impact than being surprised when your tax returns are prepared and you now owe a surprising “big chunk of change”.

If you do not withhold enough, then you may have to pay when you file your taxes instead of getting a refund.

Updated income-tax withholding tables for 2014 have been released by the IRS and supersede withholding tables issued in December 2013. The newly revised version contains percentage method income-tax withholding tables and related information that employers need to implement these changes.

In addition, employers should continue withholding Social Security tax at the rate of 6.2 percent of wages paid. The Social Security wage base limit increases to $117,000. The Medicare tax rate remains at 1.45 percent each for the employee and employer.

The additional Medicare tax of .09 percent for employees (not employers) remains in effect and should be withheld from employee wages that exceed $200,000 in a calendar year, at the beginning in the pay period in which the employee’s wages exceed $200,000.

Employers should start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2014, but not later than February 15, 2014. For any Social Security tax under-withheld before that date, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2014.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form. Individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

As always, it’s prudent for workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms.

Give us a call if you have any questions about income tax withholding in 2014. We’re here to help.

====================================================

Rex at Calif CPA Society Building 2013_JPEG

.

====================================================
A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California by calling; 1 (800) 464-6595 Toll Free or (925) 934 6320, Walnut Creek or (415) 982-1110, San Francisco ; and you can contact our office by e-mail at rexcrandell@astound.net
http://www.rexcrandell.com
http://www.taxrexcrandell.com
We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…
Please contact our office if you have any questions.
Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

============================================
FROM:
Rex L. Crandell Firm
Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
————————————————-
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Skype Address rex.crandell
Fax: (925) 934-6325
————————————————-
All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept. Web New Tax News Online Report
Walnut Creek, California 94598-9305 United States of America
_________________________________________________________________
.

.

ITS TAX TIME Y ALL _GIF  15 FEB 14

.

.

.

 

 

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.

Tax Guidance for Legally Married Same-Sex Couples

Under a joint IRS and U.S. Department of the Treasury ruling issued in 2013, same-sex couples, legally married in jurisdictions that recognize their marriages, are treated as married for federal tax purposes, including income and gift and estate taxes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.

In addition, the ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.

Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory or a foreign country is covered by the ruling. However, the ruling does not apply to registered domestic partnerships, civil unions or similar formal relationships recognized under state law.

Legally-married same-sex couples generally must file their 2013 federal income tax return using either the married filing jointly or married filing separately filing status.

Individuals who were in same-sex marriages may, but are not required to, file original or amended returns choosing to be treated as married for federal tax purposes for one or more prior tax years still open under the statute of limitations.

Generally, the statute of limitations for filing a refund claim is three years from the date the return was filed or two years from the date the tax was paid, whichever is later. As a result, refund claims can still be filed for tax years 2010, 2011 and 2012. Some taxpayers may have special circumstances, such as signing an agreement with the IRS to keep the statute of limitations open, that permit them to file refund claims for tax years 2009 and earlier.

In addition, employees who purchased same-sex spouse health insurance coverage from their employers on an after-tax basis may treat the amounts paid for that coverage as pre-tax and excludable from income.

Questions?

If you need to file a claim for a refund or have any questions about the IRS ruling, please let us know. We are happy to assist you.

ITS TAX TIME Y ALL _GIF  15 FEB 14

====================================================

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:
Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.
You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California by calling; 1 (800) 464-6595 Toll Free or (925) 934 6320, Walnut Creek or (415) 982-1110, San Francisco ; and you can contact our office by e-mail at rexcrandell@astound.net
http://www.rexcrandell.com
http://www.taxrexcrandell.com
We would be happy to hear from you.
…FROM REX CRANDELL’s OFFICE…
Please contact our office if you have any questions.
Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

Rex at Calif CPA Society Building 2013_JPEG

============================================
FROM:
Rex L. Crandell Firm
Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
————————————————-
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Skype Address rex.crandell
Fax: (925) 934-6325
————————————————-
All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept. Web New Tax News Online Report
Walnut Creek, California 94598-9305 United States of America
___________________________________________________________________

.

ITS TAX TIME Y ALL _GIF  15 FEB 14

.

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.

.
.

Rex says:  The US Constitution limits federal law making to bills passed by both houses of Congress and then signed ny the President of the USA.  See the clear language that is included in the USA Constitution in Article 1, Sections 7 and 8. No authority is granted in the Constition for Federal Administrative Agencies to create, modify or change any federal statute. No such power or right exists nor was ever granted by the US Constition unless the wording in the statute authorizes regulations that do not conflict with with the meaning of a properly enacted statute. See the following report from The Cato Institute to find out more about this situation.

http://www.cato.org/blog/irs-illegally-expands-obamacare

image
.
.

image

.
.

image
.

.

image
.
.
image
.

.
image
.

.

image

.

.
image
.

.
image

.
.
No you can not deduct it, Sam I Am.
You can not deduct green eggs and ham, Sam I Am.
You must declair all of your green eggs and ham, if you don’t want to get whooped by the penalty stick, Mr. Sam I Am.
.
.
image

.

.

.

.
image

.
Bdee Bdee Bdeet … thats all folks.
image

.

.

.

.

====================================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320, Walnut Creek, California;  or  (415) 982-1110, San Francisco, California

or by e-mail at:    rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
————————————————-
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/ 
Skype Address rex.crandell
Fax: (925) 934-6325
————————————————-

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept.  Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America
.
==================

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY.

IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY EARLY.

.
==================

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY.

IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY EARLY.

.

.

________________________________________________________________________

.

AMERICA IS STRONG. AMERICA BELIEVES IN FREE ENTERPRISE & PROPERTY RIGHTS & NOT COMUNISM NOR SOCIALIASM.

 

USA ~ EAGLE & FLAG Mov Gif 04FEB14

.

image

Many people are unaware of the large scale impact the Afordable Care Act (aka Obama Care) will have on the Internal Revenue Service IRS.  They will need to hire 16, 000 new IRS workers to handle the task. The law will impact every person who is required to file an individual income tax return in the United States. The Treasury Inspector for Tax Administration (TIGTA) audits the IRS then reports back to the Congress, the public and to the IRS management. I have included a summary of the recent report on what TIGTA thinks are the challenges to the IRS when trying to implement the Affordable Care Act at the present time.

READ ALL ABOUT IT.

.
.TIGTA Treasury Inspector General for Tax Administration~MAST HEAD~ rlc 04FEB14 JPEG

USA ~ EAGLE & FLAG Mov Gif 04FEB14

TIGTA SAYS:

Affordable Care Act: The Customer Service Strategy Sufficiently Addresses Tax Provisions; However, Changes in Implementation Will Create Challenges   (Auditor of the IRS-‘TIGTA’  Treasury Inspector General for Tax Administration Office of Audit.

AFFORDABLE CARE ACT:

THE IRS CUSTOMER SERVICE STRATEGY SUFFICIENTLY ADDRESSES TAX PROVISIONS;

HOWEVER, CHANGES IN IMPLEMENTATION WILL CREATE CHALLENGES

Issued on December 30, 2013 Highlights Highlights of Report Number: 2014-43-006 to the Internal Revenue Service Deputy Commissioner for Services and Enforcement IMPACT ON TAXPAYERS The Affordable Care Act (ACA) includes tax provisions that require individuals to maintain minimum essential coverage (MEC) and that provide for a tax credit (Premium Tax Credit) to offset an individual’s health care expenses. The IRS will impose a penalty on any taxpayer who, after Calendar Year 2013, fails to maintain the MEC for three months or more and does not qualify for an exemption.

WHY TIGTA DID THE AUDIT.

This audit was initiated to evaluate the IRS’s efforts to provide individuals assistance related to the ACA provisions on obtaining the MEC and the tax credit to offset health care expenses.  Starting in October 2013, individuals who seek to acquire the MEC for Calendar Year 2014 will be offered a choice of health plans and the ability to determine their eligibility for a tax credit through one of the State Marketplaces or the Federal Marketplace.

WHAT TIGTA FOUND.

The IRS’s customer service strategy is a collaborative and coordinated effort between the IRS and multiple Federal and State agencies.  The strategy includes sufficient plans to 1) perform outreach and education; 2) update or develop tax forms, instructions and publications; and 3) provide employee training to assist individuals in understanding the requirement to maintain the MEC and the tax implications of obtaining the tax credit to offset the cost of health care insurance.In a May 2012 Memorandum of Understanding between the IRS and the Department of Health of Human Services (HHS), it was agreed that the HHS would be the lead agency and serve as the “public face” for providing customer service at the Marketplaces until Calendar Year 2015.  Individuals who contact the IRS for ACA assistance will be referred to the HHS’s public website (Healthcare.gov) and toll-free telephone assistance lines.  The IRS will also refer individuals to its own recorded telephone messages and self-assistance tools.In Calendar Year 2015, the IRS will take the lead to provide customer service when individuals begin filing their 2014 tax returns and must include the amount of any Advance Premium Tax Credit payments on their tax return and reconcile it to the allowable amount.  The IRS’s customer service will include providing face-to-face assistance at its 390 Taxpayer Assistance Centers located throughout the United States.However, changes in ACA implementation will create challenges.  Depending on the nature of any changes made to ACA tax provisions, the IRS’s strategy and plans to provide customer service, outreach, education, and employee training could be affected.  Changes to the provisions could also affect the IRS’s plans to update its tax forms, instructions, and publications.

WHAT TIGTA RECOMMENDED.      TIGTA did not make recommendations in this report.  A draft of the report was provided to IRS management for review. The IRS did not provide comments on the report.
.

READ THE FULL REPORT

To view the report, including the scope and methodology, go to: http://www.treas.gov/tigta/auditreports/2014reports/201443006fr.html      Or, if you prefer,  see below for full text of report included for convenient reference purposes. E-mail Address: TIGTACommunications@tigta.treas.gov Phone Number: 202-622-6500 Website: http://www.treasury.gov/tigta

I have included the full text of the actual TIGTA Report for those readers that desire additional information on the subject.

.

.

====================================================

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:
Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320;
and you can contact our office by e-mail at rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
————————————————-
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/
Skype Address rex.crandell
Fax: (925) 934-6325
————————————————-

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept. Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY.

IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY EARLY.

___________________________________________________________________________

STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

___________________________________________________________________________

.

.

.
.
=============================================================================

USA ~ EAGLE & FLAG Mov Gif 04FEB14

The “rest of the story” as Paul Harvey used to say…

TIGTA Treasury Inspector General for Tax Administration~MAST HEAD~ rlc 04FEB14 JPEG

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

The Affordable Care Act (aka Obama Care) :
The Customer Service Strategy Sufficiently Addresses Tax Provisions; However, Changes in Implementation Will Create Challenges.      Pub. L. No. 111-148, 124 Stat. 119 (2010) (codified as amended in scattered sections of the U.S. Code), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029.

December 30, 2013                                                                   Reference Number: 2014-43-006

This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.

Phone Number / 202-622-6500     E-mail Address / TIGTACommunications@tigta.treas.gov     Website / http://www.treasury.gov/tigta

HIGHLIGHTS
AFFORDABLE CARE ACT: THE CUSTOMER SERVICE STRATEGY SUFFICIENTLY ADDRESSES TAX PROVISIONS; HOWEVER, CHANGES IN IMPLEMENTATION WILL CREATE CHALLENGES
Highlights
Final Report issued on December 30, 2013    Highlights of Reference Number: 2014-43-006 to the Internal Revenue Service Deputy Commissioner for Services and Enforcement.

IMPACT ON TAXPAYERS
The Affordable Care Act (ACA) includes tax provisions that require individuals to maintain minimum essential coverage (MEC) and that provide for a tax credit (Premium Tax Credit) to offset an individual’s health care expenses. The IRS will impose a penalty on any taxpayer who, after Calendar Year 2013, fails to maintain the MEC for three months or more and does not qualify for an exemption.

WHY TIGTA DID THE AUDIT
This audit was initiated to evaluate the IRS’s efforts to provide individuals assistance related to the ACA provisions on obtaining the MEC and the tax credit to offset health care expenses. Starting in October 2013, individuals who seek to acquire the MEC for Calendar Year 2014 will be offered a choice of health plans and the ability to determine their eligibility for a tax credit through one of the State Marketplaces or the Federal Marketplace.
WHAT TIGTA FOUND
The IRS’s customer service strategy is a collaborative and coordinated effort between the IRS and multiple Federal and State agencies. The strategy includes sufficient plans to 1) perform outreach and education; 2) update or develop tax forms, instructions, and publications; and 3) provide employee training to assist individuals in understanding the requirement to maintain the MEC and the tax implications of obtaining the tax credit to offset the cost of health care insurance.
In a May 2012 Memorandum of Understanding between the IRS and the Department of Health and Human Services (HHS), it was agreed that the HHS would be the lead agency and serve as the “public face” for customer service at the Marketplaces until Calendar Year 2015. Individuals who contact the IRS for ACA assistance will be referred to the HHS’s public website (Healthcare.gov) and toll-free telephone assistance lines.

The IRS will also refer individuals to its own recorded telephone messages and self-assistance tools.
In Calendar Year 2015, the IRS will take the lead to provide customer service when individuals begin filing their 2014 tax returns and must include the amount of any Advance Premium Tax Credit payments on their tax return and reconcile it to the allowable amount. The IRS’s customer service will include providing face-to-face assistance at its 390 Taxpayer Assistance Centers located throughout the United States.

However, changes in ACA implementation will create challenges. Depending on the nature of any changes made to ACA tax provisions, the IRS’s strategy and plans to provide customer service, outreach, education, and employee training could be affected. Changes to the provisions could also affect the IRS’s plans to update its tax forms, instructions, and publications.

WHAT TIGTA RECOMMENDED
TIGTA did not make recommendations in this report. A draft of the report was provided to IRS management for review. The IRS did not provide comments on the report.

TIGTA Treasury Inspector General for Tax Administration~MAST HEAD~ rlc 04FEB14 JPEG

December 30, 2013

MEMORANDUM FOR DEPUTY COMMISSIONER FOR SERVICES AND ENFORCEMENT

FROM: Michael E. McKenney /s/ Michael E. McKenney       Acting Deputy Inspector General for Audit

SUBJECT: Final Audit Report – Affordable Care Act: The Customer Service Strategy Sufficiently Addresses Tax Provisions; However, Changes in Implementation Will Create Challenges (Audit # 201340317)

This report presents the results of our review to evaluate the Internal Revenue Service’s (IRS) customer service planning efforts to provide assistance to individuals for the Affordable Care Act[1] provisions on obtaining minimum essential coverage and the tax credit to offset health care expenses. This audit was included in the Treasury Inspector General for Tax Administration’s Fiscal Year[2] 2013 Annual Audit Plan and addresses the major management challenge of Implementing the Affordable Care Act and Other Tax Law Changes.
Although we made no recommendations in this report, we did provide IRS officials an opportunity to review the draft report. IRS management did not provide us with comments on the report.
If you have any questions, please contact me or Russell P. Martin, Acting Assistant Inspector General for Audit (Returns Processing and Account Services).

Table of Contents
Background
Results of Review
The Customer Service Strategy Is a Collaborative and Coordinated Effort
Changes in Affordable Care Act Implementation Will Create Challenges to Customer Service Planning
Appendices
Appendix I – Detailed Objective, Scope, and Methodology
Appendix II – Major Contributors to This Report
Appendix III – Report Distribution List

Abbreviations

ACA
HHS Affordable Care Act
Department of Health and Human Services
IRS Internal Revenue Service
MEC Minimum Essential Coverage
PTC Premium Tax Credit

Background

The Patient Protection and Affordable Care Act of 2010[3] and the Health Care and Education Reconciliation Act of 2010[4] (hereafter collectively referred to as the Affordable Care Act (ACA)) were both signed into law in March 2010. The ACA seeks to provide more Americans with access to affordable health care by creating a new Health Insurance Marketplace (also known as Exchanges and hereafter referred to as Marketplace), enforcing patient/consumer protections, and providing Government subsidies for people who cannot afford insurance. The Marketplace simplifies an applicant’s search for health coverage by providing multiple options in one place and comparing plans based on price, benefits, quality, and other important features that help consumers make a choice.

The ACA represents the largest set of tax law changes in more than 20 years and presents a major challenge to the Internal Revenue Service.

Included in the ACA are approximately 50 tax provisions that add to or amend the Internal Revenue Code. These provisions include ones that provide incentives and tax breaks to individuals and small businesses to offset health care expenses and impose penalties for individuals and businesses that do not obtain health care coverage for themselves or their employees.

The Internal Revenue Service (IRS) is responsible for implementation and administration of those ACA provisions that have an impact on tax administration. Since its passage, the IRS continues to take steps to implement the ACA provisions and help individuals understand their responsibilities and rights. These actions include revising or developing tax forms, instructions, and publications; training IRS employees; revising internal processes and procedures; issuing revenue procedures[5] and regulations;[6] developing a customer service strategy; and providing outreach to taxpayers and tax professionals.

In October 2013, individuals can begin enrolling in health insurance coverage offered through a Marketplace
In order to enroll in health insurance coverage offered through a Marketplace, taxpayers must complete an application and meet certain eligibility requirements defined by the ACA. For example, they must be citizens of the United States or lawful permanent residents. The ACA requires that enrollment at Marketplaces begin on October 1, 2013. Marketplaces will operate in every State and the District of Columbia. As of August 2013, 14 States and the District of Columbia have their own State-run Marketplaces. The Federal Government will help run or completely run the Marketplaces in the remaining 36 States.

Provisions in the ACA require individuals to have either minimum essential coverage (MEC)[7] for each month beginning January 2014, qualify for an exemption,[8] or pay a penalty to the IRS when filing their Federal income tax return. The provision applies to individuals of all ages, including children. Beginning January 2014, eligible taxpayers who purchase health insurance through a Marketplace may qualify for and request a refundable tax credit[9] to assist with paying the cost of health insurance premiums. The credit is called the Premium Tax Credit (PTC) and is claimed on the taxpayer’s Federal tax return, starting with the 2014 tax return. The PTC will be available for individuals and families who are not offered affordable MEC through an employer or a Government program, like Medicaid or Medicare, and who earned less than four times the Federal poverty level. This means individuals who earned $45,960 or less and a family of four who earned $94,200 or less in Calendar Year 2013 will qualify.

Individuals and families can receive the PTC as an advance payment to their health insurance provider to help cover the cost of premiums. This payment is referred to as the Advance PTC and will be issued monthly by the Department of the Treasury’s Federal Management Services Branch on behalf of the taxpayer to the health insurance provider.

This audit was conducted while changes were being made to the ACA regulations and while the IRS was updating its implementation strategy. Changes and updates that occurred after we concluded our analyses in August 2013 are not reflected in this report. This review was performed by analyzing data obtained from the IRS Headquarters ACA Office in Washington, D.C., during the period April through August 2013. We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objective. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objective. Detailed information on our audit objective, scope, and methodology is presented in Appendix I. Major contributors to the report are listed in

Appendix II.

Results of Review

The Customer Service Strategy Is a Collaborative and Coordinated Effort
The IRS’s ACA customer service strategy provides sufficient plans to assist individuals in understanding the tax implications of the ACA. The strategy is a collaborative and coordinated effort between the IRS and multiple Federal and State agencies. The strategy includes sufficient plans to: 1) perform outreach and education; 2) update and/or develop tax forms, instructions and publications; and 3) provide employee training to assist individuals in understanding requirements to maintain the MEC and the tax implications of obtaining the tax credit to offset the cost of health care insurance.
Although the Department of Health and Human Services (HHS) is the lead agency in implementing the ACA, many of the provisions require the IRS to provide information to assist the Marketplace with determining eligibility and enrollment, develop calculations such as the maximum Advance PTC, and reconcile the credit with reported taxable income. The IRS’s ACA Office provides strategic direction to implement ACA provisions. Within the ACA Office, unique teams have been created to focus on various aspects of the IRS’s implementation of ACA provisions. For example:

•••••s interagency efforts, and legislative activities with regard to the ACA. The office also facilitates communications between the ACA Office and other IRS offices.

•••••••The Filing and Premium Tax Credit Team provides direction in the design of processes to support the implementation of new ACA filing requirements. The office also oversees coordination with multiple government agencies.

••••••free telephone assistance.
The customer service strategy refers individuals to the HHS for ACA assistance until Calendar Year 2015
In a May 2012 Memorandum of Understanding between the IRS and the HHS, it was agreed that the HHS would be the lead agency and serve as the “public face” for customer service at the Marketplaces until Calendar Year 2015. The HHS is also responsible for monitoring the State run Marketplaces to ensure that they are providing accurate and consistent information on ACA provisions. The HHS developed detailed guidelines on the actions that the State-run Marketplaces must perform, including providing appropriate outreach and education.
In Calendar Year 2015, the IRS will take the lead in providing customer service when individuals begin filing their 2014 tax returns and must include the amount of any Advance PTC on their tax return and reconcile it to the allowable amount of the PTC. This will include providing face-to-face assistance at its 390 Taxpayer Assistance Centers located throughout the United States, starting in January 2015.
Until such time, the IRS will refer individuals contacting the IRS for ACA assistance to the HHS’s public website (Healthcare.gov) and toll-free telephone assistance lines, and offer its own recorded telephone messages and self-assistance tools. Although the IRS will refer individuals to the HHS, the IRS remains responsible for coordinating, reviewing, and approving the ACA messages and information provided to individuals contacting the HHS’s toll-free telephone lines and/or researching the Healthcare.gov website regarding both tax provisions. In addition to its coordinated efforts with the HHS, the IRS’s strategy includes the:

•••••••free telephone assistance lines. The topical areas of these messages include information on how to obtain health care coverage, implications of not obtaining health care coverage (penalties), and the availability of financial assistance to purchase health care coverage, including the Advance PTC. We reviewed the content of these messages and determined that the information was accurate.

••••••s website contains further information to assist individuals in learning about the Advance PTC, including income levels that could qualify for this credit. We reviewed MEC and PTC content on both the IRS and the HHS websites and confirmed that information was accurate.

••••••Use of social media[10] sites such as Twitter and Facebook to provide individuals with the latest information on ACA tax changes and services.
The IRS’s customer service strategy also includes processes to continuously monitor the informational needs of the public in an attempt to ensure that the information needed is being provided. These monitoring processes include reviewing call center Contact Analytics[11] and Quality reports, counts of ACA contacts at the Taxpayer Assistance Centers, and counts for individuals listening to the various pre-recorded, toll-free telephone ACA messages. The call volumes are monitored to determine volume spikes, ACA topic needs, and the effectiveness of the telephone message scripts. The IRS is reviewing this information weekly to determine if any changes are needed to its outreach and education efforts.
The IRS’s outreach and education plan is part of a larger Government education campaign in which the IRS collaborated with other Federal agencies, including the U.S. Department of Labor and the HHS. As part of this effort, the IRS developed an agencywide outreach and education plan to reach major ACA customer segments with tax–related information. Figure 1 provides a summary of some of the outreach and education activities completed or planned by the IRS and the HHS related to ACA tax provisions.
Figure 1: IRS and HHS Outreach and Education Activities
Completed or Planned

Agency Outreach and Education Activity

IRS Issued several proposed and final regulations and notices and developed a Frequently Asked Questions section related to MEC and PTC provisions and posted this information to its IRS.gov ACA website.
Issued Publication 5093, Health Care Law Online Resources, in June 2013 which provides a list of ACA-related online resources for individuals and employers, including the website addresses for the HHS, the IRS, and other Federal agencies.

Prepared a presentation on MEC and PTC provisions presented at IRS Nationwide Tax Forums held during the period July to September 2013. About 8,000 individuals attended these presentations.
HHS Developed a paper and online health insurance application for use by the Marketplaces.
Opened a toll-free telephone call center in June 2013 to provide automated informational messages to inquiries from individuals seeking health insurance information. The call center started offering live assistance in August 2013. In addition, as of August 2013, customers can use online chat and can create accounts on Healthcare.gov in preparation of the Marketplace open enrollment on October 1, 2013.
Will provide Navigators (contractors who will assist individuals with the application process to obtain insurance at the Marketplaces) with comprehensive training on the tax implications of consumer enrollment decisions, eligibility requirements for the PTC, and the impact of the tax credit on the cost of insurance.
Source: Treasury Inspector General for Tax Administration analysis of IRS and  HHS outreach and education planning documents.

Tax forms, instructions, and/or publications are being updated and/or developed

In a prior audit,[12] we reported the IRS has two tiers of controls in place for ensuring that tax forms, instructions, and related publications are updated for ACA provisions. The first tier is the informed assessment conducted by the Tax Forms and Publications function. This function reviews new legislation and identifies a “first cut” of what forms, publications, and instructions need to be revised for every legislative provision. The second tier is the business assessment performed by subject matter experts in the business units and aided by the Tax Forms and Publications function. Often the business units will confirm what the Tax Forms and Publications function identified and may identify additional affected forms, publications, and instructions.

The audit also found that the IRS is updating and developing tax forms, instructions, and publications related to the MEC and the PTC. For example, the following are three of the new tax forms the IRS is creating to assist individuals in complying with MEC provisions:

••••••Form 8965, Reporting of Exemptions From Coverage, will be used by individual taxpayers to report to the IRS the exemption certificate number received from a Marketplace, or for individuals to apply for an exemption with the IRS. An individual will submit this form starting with their 2014 tax return as proof that they are not required to maintain the MEC and are not subject to a penalty.

•••••••A, Affordable Insurance Exchange Statement, will be used by the Marketplaces to furnish a written statement to each individual who enrolled, or whose family member enrolled, in a qualified health insurance plan. The written statement contains information that the Marketplaces must report to the IRS annually. This statement will serve as proof that the individual maintained the MEC and is not subject to a penalty.

•••••••B, Health Insurance Coverage Statement, will be used by a health insurance company to furnish a written statement to each individual who enrolled, or whose family member enrolled, in a qualified health insurance plan. This statement will serve as proof that the individual maintained the MEC and is not subject to a penalty.
These tax forms are critical to the IRS’s ability to validate or process MEC exemptions and to provide a way for the IRS to determine if individuals are in compliance with MEC requirements. The IRS will release these new tax forms around May 2014 for public comment with the final versions available in the first quarter of Fiscal Year[13] 2015. Individuals will be able to obtain ACA-related tax forms and publications by ordering them on the IRS’s toll-free telephone lines, downloading them from IRS.gov, or visiting a Taxpayer Assistance Center.
IRS employees are being trained on ACA tax provisions, and the IRS is assisting the HHS in the development of ACA tax-related training for its employees

The IRS began training its employees on the ACA the third quarter of Fiscal Year 2013 and has plans to continue training employees into the second quarter of Fiscal Year 2014. Business operating divisions[14] identified their ACA orientation training needs and work is underway to address these needs. For example:

••••••depth ACA information.

•••••••Internal executive briefings were conducted with key business operating division executives in the third quarter of Fiscal Year 2013 to provide an overview of ACA Marketplace related provisions, including the PTC and the MEC.

••••••ACA information has been incorporated into continuing professional education courses for revenue officers and examination employees.[15]

••••••s strategy to refer taxpayer inquiries to the HHS.
In addition, the IRS worked with the HHS to develop and review the tax-related content of the PTC training material that the HHS provides its employees to ensure that the information is accurate. The IRS is also working with the HHS on the training material related to the MEC.
Analysis performed to estimate customer service staffing resources
The IRS completed an analysis to estimate the customer service staffing resources needed in Fiscal Year 2014 to implement the ACA. Review of the documentation found that the analysis was based on adequate operational and financial data, and reasonable assumptions were made relating to such things as the percent of account and nonaccount-related questions that individuals might ask and the percent of those calls that the IRS can address with self-assistance tools versus live assistance. For Fiscal Year 2014, the IRS estimates that it will receive 11.4 million contacts from individuals that relate to ACA tax provisions.[16] To handle these contacts, the IRS estimates that it will need 754 Full-Time Equivalents[17] in its Accounts Management and Field Assistance functions. Another 195 Full-Time Equivalents are estimated to be needed in other functions affected by the ACA, such as those involved in the processing and examination of tax returns. If further budget cuts are made to IRS customer service for Fiscal Year 2014, the IRS will need to re examine its plans and consider cutbacks in the services it can provide or reduce staffing in other programs.

Changes in Affordable Care Act Implementation Will Create Challenges to Customer Service Planning
Changes in the implementation of ACA tax provisions can result in increased demand for customer service assistance resulting in more contacts with the IRS. Depending on the nature of any changes made to ACA tax provisions, the IRS’s strategy and plans to provide adequate customer service; outreach and education; employee training; and tax forms, instructions, and publications could be affected. For example, implementation of a key ACA provision related to the requirement for applicable employers to offer health insurance was delayed on July 2, 2013. The implementation of this provision was delayed until Calendar Year 2015. The provision requires employers with 50 or more full-time equivalent employees to provide insurance to their employees or pay a fee to the IRS. If employers choose not to provide insurance coverage to their employees in Calendar Year 2014, the employees may seek insurance through the Marketplaces starting in October 2013 and could apply for financial assistance through the Advance PTC.

In an attempt to mitigate the effect that implementation changes may have on the IRS’s ability to provide adequate customer service, the IRS has developed oversight and monitoring processes and procedures. These are in place to alert the IRS at the earliest possible time period of actions that may affect its operations. For example, the IRS ACA Office:
••••••Monitors public debate, pending bills, legislation, regulations, and court activities.

•••••••Reviews reports provided weekly from its Legislative Affairs function. These reports identify bills that may be moving through Congress that would modify the ACA, if passed.

•••••••related systems are developed as scheduled, and forms and publications are developed or updated and available to taxpayers on time.

TIGTA Treasury Inspector General for Tax Administration~MAST HEAD~ rlc 04FEB14 JPEG

Appendix I

Detailed Objective, Scope, and Methodology

Our overall objective was to evaluate the IRS’s customer service planning efforts to provide assistance to individuals for the ACA provisions on obtaining the MEC and the tax credit to offset health care expenses. Our review was limited to the IRS’s customer service strategy; plans to update forms, instructions, and publications; training for customer service employees; outreach and education of taxpayers and tax return preparers; coordination with the HHS; and resource estimation. To accomplish this objective, we:
I. Evaluated the IRS’s customer service strategy to assist individuals seeking information related to the MEC and the tax credit.
A. Reviewed business requirements, project roadmaps defining milestones, and other documentation relevant to the customer service strategy.
B. Determined the IRS’s plans to coordinate with other Federal agencies on customer service.
C. Determined the IRS’s internal plans for providing customer service at the Taxpayer Assistance Centers and through toll-free telephone access.
II. Determined if the IRS had adequate plans for changes to forms, instructions, publications, and Internal Revenue Manuals that will be affected by the requirement to maintain the MEC and the ACA tax credit provisions.
III. Determined if the IRS had planned for adequate training for employees responsible for providing customer service related to the requirement to maintain the MEC and the ACA tax credit provisions.
IV. Determined if the IRS had an adequate plan to perform outreach and education to individual taxpayers and tax return preparers regarding the requirement to maintain the MEC and the availability of the tax credit.
A. Determined if the IRS had an adequate plan to perform outreach and education to individual taxpayers and tax return preparers.
B. Determined whether the IRS’s plans for providing information on IRS.gov and through social media were adequate.
C. Determined plans to educate taxpayers on the process/method by which the Advance PTC is advanced to taxpayers and later reconciled with their returns.
D. Determined whether the IRS planned to target outreach and education by demographics and how the demographics will be collected.
E. Determined whether the IRS had adequate plans to monitor and measure the outreach and education efforts.
F. Determined if the IRS had adequately planned for the resources needed to provide customer service related to the requirement to maintain the MEC and the availability of the tax credit. In addition, we evaluated the documentation supporting staffing resource estimates.
Internal controls methodology
Internal controls relate to management’s plans, methods, and procedures used to meet their mission, goals, and objectives. Internal controls include the processes and procedures for planning, organizing, directing, and controlling program operations. They include the systems for measuring, reporting, and monitoring program performance. We determined the following internal controls were relevant to our audit objective: the IRS’s planning processes to ensure that customer service is provided to taxpayers regarding the requirement to maintain the MEC and the availability of the tax credit. We evaluated these controls by interviewing management and analyzing IRS planning documents.

TIGTA Treasury Inspector General for Tax Administration~MAST HEAD~ rlc 04FEB14 JPEG

Appendix II

Major Contributors to This Report

Russell P. Martin, Acting Assistant Inspector General for Audit (Returns Processing and Account Services)
Allen Gray, Director,   Wilma Figueroa, Audit Manager,   Pamela DeSimone, Lead Auditor,   Jack Forbus, Senior Auditor,   Nelva Usher, Auditor

Appendix III

Report Distribution List

Commissioner,   Office of the Commissioner – Attn: Chief of Staff C,   Commissioner, Wage and Investment Division SE:W,    Director, Affordable Care Act Office SE:ACA,    Deputy Director, Strategy and Finance, Wage and Investment Division SE:W:S,    Associate Chief Financial Officer for Corporate Planning and Internal Control OS:CFO:CPIC,    Chief Counsel CC.    National Taxpayer Advocate TA,     Director, Office of Legislative Affairs CL:LA,     Director, Office of Program Evaluation and Risk Analysis RAS:O     Office of Internal Control OS:CFO:CPIC:IC     Audit Liaisons:     Director, Oversight and Non-Exchange Provisions SE:ACA
Chief, Program Evaluation and Improvement, Wage and Investment Division SE:W:S:PEI

TIGTA Treasury Inspector General for Tax Administration~MAST HEAD~ rlc 04FEB14 JPEG

FOOTNOTES

________________________________________
[1] Pub. L. No. 111-148, 124 Stat. 119 (2010) (codified as amended in scattered sections of the U.S. Code), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029.
[2] A 12-consecutive-month period ending on the last day of any month. The Federal Government’s fiscal year begins on October 1 and ends on September 30.
[3] Pub. L. No. 111-148, 124 Stat. 119 (2010) (codified as amended in scattered sections of the U.S. Code), as amended by the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 124 Stat. 1029.
[4] Pub. L. No. 111-152, 124 Stat. 1029. (See Affordable Care Act, infra).
[5] Revenue procedures are official statements of a procedure that affects the rights or duties of taxpayers or other members of the public under the Internal Revenue Code, related statutes, tax treaties, and regulations and that should be a matter of public knowledge. A revenue procedure provides return filing or other instructions concerning an IRS position.
[6] Regulations are issued by the IRS and the Department of the Treasury to provide guidance for new legislation or to address issues that arise with respect to existing Internal Revenue Code sections. Regulations interpret and give directions on complying with the law.
[7] The MEC may include employer-sponsored coverage, coverage purchased in a Marketplace, Medicare Part A coverage and Medicare Advantage, Medicaid coverage, or other coverage types.
[8] Individuals may qualify for exemptions from the MEC. Certain exemptions, such as unaffordable coverage and short insurance coverage gaps, can be claimed only as part of filing a Federal income tax return, starting with the 2014 tax return. Exemptions for religious conscience and hardship can be obtained only through the Marketplaces starting in Calendar Year 2014. Exemptions for members of Indian tribes, members of health care sharing ministries, and individuals who are incarcerated can be obtained through either the Marketplaces or by filing a Federal tax return.
[9] Any tax credit that is refundable can be used by the taxpayer to reduce his or her tax liability to zero. Any excess of the credit beyond the tax liability can be refunded to the taxpayer.
[10] Social media is the use of web-based and mobile technologies to turn communication into interactive dialogue.
[11] Contact Analytics is a business intelligence and performance management tool using speech analytics technology. It is used to evaluate recorded audio for the purpose of identifying opportunities for improving the customer experience and potential cost savings/efficiency gains.
[12] Treasury Inspector General for Tax Administration, Ref. No. 2012-43-064, Affordable Care Act: Planning Efforts for the Tax Provisions of the Patient Protection and Affordable Care Act Appear Adequate; However, the Resource Estimation Process Needs Improvement p. 6 (Jun. 2012).
[13] A 12-consecutive-month period ending on the last day of any month. The Federal Government’s fiscal year begins on October 1 and ends on September 30.
[14] Business operating divisions refer to the IRS’s four main divisions: 1) the Large Business and International Division; 2) the Small Business/Self-Employed Division; 3) the Wage and Investment Division; and 4) the Tax Exempt and Government Entities Division.
[15] Revenue officers are employees in the Collection Field function who attempt to contact taxpayers and resolve collection matters that have not been resolved through notices sent by the IRS submission processing sites. Examination function employees include employees who primarily conduct examinations of individual taxpayers’ tax returns.
[16] Including the small business health care tax credit, excise tax on tanning, and the additional Medicare taxes on high-income taxpayers (non-Marketplace provisions).
[17] A measure of labor hours in which one Full-Time Equivalent is equal to eight hours multiplied by the number of compensable days in a particular fiscal year.

________________________________________

====================================================

A MESSAGE FROM REX CRANDELL’S TAX OFFICE:

Our firm provides income tax preparation and planning services for individuals, families, C Corporations, S Corporations, LLC Limited Liability Companies, Partnerships, domestic partners, for income and deductions generated in California, the United States, and assist taxpayers internationally comply with the USA income tax reporting requirements. Rex Crandell, Esq. also provides services in the area of Estate Planning, Estate Administration, Probate Procedures, Advance Healthcare Directives, Durable Powers of Attorney for Financial Management, and Advance Health Care Directives.

You can contact Rex Crandell’s offices in Walnut Creek and San Francisco, California
by calling; 1 (800) 464-6595;
or (925) 934 6320;
and you can contact our office by e-mail at rexcrandell@astound.net

http://www.rexcrandell.com/

http://www.taxrexcrandell.com/

We would be happy to hear from you.

…FROM REX CRANDELL’s OFFICE…

Please contact our office if you have any questions.

Very truly yours,
/s/ Rex L. Crandell
Rex L. Crandell. CPA, Esq.

image002

============================================

FROM:

Rex L. Crandell Firm

Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor [ Click For MAP TO OUR OFFICE]
(800) 464-6595
————————————————-
E-Mail: mailto:rexcrandell@astound.net
Internet: http://www.rexcrandell.com
Internet 2nd Web http://taxrexcrandell.com
Internet 3rd Web http://estateplanningreport.wordpress.com
Internet 4th Web https://taxnewsonlinereport.wordpress.com/
Skype Address rex.crandell
Fax: (925) 934-6325
————————————————-

All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305-Dept. Tax News Blog Update
Walnut Creek, California 94598-9305 United States of America

________________________________________________________

STATEMENT PURSUANT TO IRS CIRCULAR 230: The drafter of this document did not intend nor write this document for the purpose that this document would be used to avoid any penalty imposed by a taxing authority, for promoting, marketing or recommending this advice to another party. The recipient of this document may not use this document for that purpose. Rex Crandell Firm would be pleased to prepare or arrange to have prepared by legal counsel, as applicable, a document that would meet the specific requirements of IRS Circular 230 and could be used for those purposes. Please advise us if you desire such a document.

_________________________________________________________

.

IT'S TAX TIME.  BETTER GET YOUR PAPERS AND FILES READY EARLY.

IT’S TAX TIME. BETTER GET YOUR PAPERS AND FILES READY EARLY.

.

.

.

.

.

.

.

.

.
.
.
.
.
.

.

CALIFORNIA FTB ‘READY TAX RETURN’ IS FREE,
ONLINE & HOW MARVELOUs.
(AND A WONDERFUL WAY TO MISS TAX DEDUCTIONS SO YOU CAN PAY TOO MUCH TAX, WHICH IS ALSO EASY AND FREE BUT ACTUALLY COST YOU A LOT IN EXTRA TAX UNDER THE BANNER OF ‘FREE’. SO IT IS NOT REALLY FREE.)

.

FTB~JPEG~READY TAX RETURN~FROM 1099 INFO~LOOSE YOUR DEDUCTIONS~& IT IS FREE rlc 12 03 13_JPEG

.

The program presented by the California State Franchise Tax Board looks so slick and easy. The cute gal tells you how easy it is to file your tax returns from the IRS Forms that are turned in by third party vendors on transactions they had with the tax payer during the year.

What is include is mostly income items because third party vendors are not usually required to give IRS Form 1099 type information to the government so that you get the proper deductions so you pay the proper tax after subtracting your deductions. They would include, but are not limited to the following: IRS Forms 1099 for interest income, dividend income, stock sales, real estate sales, and miscellaneous income from personal services. It would include the IRS Forms W-2 for wages you earned during the year and this one is so very obvious. It would also include the IRS Forms 1098 which are the bank and mortgage company reports on how much interest you paid on your home mortgage during the year and is an itemized deduction. The IRS Forms 1098 frequently do not show the amount of property tax you paid on your personal residence or on a rental property, so something is likely missing from your deductions.

 The problem is that the cute FTB spokesperson fails to tell the public about any of the pitfalls in the program.

  •   Does it also file your Federal IRS Tax returns at the same time? No.
  •   Does it make sure that your Federal IRS Tax returns match the same information on the CA FTB tax returns? No.
  •    Is it likely to encourage people not to be detailed and focused so that they do not miss any valid tax deductions that would reduce their tax liability? No.
  •   Does it offer helpful checklists so that you pay the lowest possible income taxes? No.
  •    Is it really free if you end up paying more tax than you need to pay by helping to omit tax deductions that you are entitled to claim? No.
  •   Does is say you have to come to the free & easy website with your federal income tax returns already completed so you can transfer your federal adjusted gross income on to the starting point of the state tax forms? No.
  •   Does it advise you that the accuracy of IRS Forms 1099 and other third party vendor reports may not be accurate and completely posted to your tax file information already in the FTB’s file because the FTB frequently gets most of its IRS Form 1099 information from the IRS and the IRS records are not normally reliable until September each year for the prior year data. This is long after the close of the tax year when the state tax filing due date is April 15? No.
  •   Does the nice spokesperson actually tell the consumers about the very limited types of taxpayers who would benefit from this free service meaning those with only W-2 wages and no deductions so essentially they would be filing a short form in the first place? No.
  •   Does the promotion say that Income Tax Forms have always been free from the government so why is being free on the internet any type of novel event or marvelous opportunity? No.
  •    With all the possible pitfalls in the program does it appear that adequate consumer warnings are included to keep the program offering from possibly being misleading to the intended users of the service? No.
  •    Is getting the program password, qualifying criteria, waiting for approval to the program so you can participate in the free and easy service sound easier than just getting a free and easy Short Form FTB 540-EZ, filling it out without a password, without an internet connections and paying a whopping 46 cent plus the cost of an envelop make the program a valuable improvement in meeting your tax reporting and taxpaying obligations? No.
  •    Would the State FTB obtain a benefit by increased tax ‘revenue’ if the taxpayer went to tax professional, show charged a fee that was less than the tax saved for the service and reduced the taxpayers overall cost on the entire transaction?  No.

So the program might have been designed for people who primarily have super simple tax returns in the first place where all their income comes mostly from wages, have low income, qualify for the program, and have nothing to deduct. I will not come to that conclusion for you. I am only evaluating the situation and will leave it up to your own judgment and your own conclusions for you to decide if the program would be a benefit for you or not.

You can see the following video on the program to help you in your evaluation process.

.

.

.

These are the facts.  You can decide for yourself.
No tax or other professional services or recommendations are being offered in this news story.

FROM:
Rex L. Crandell Firm
Walnut Creek Office (For UPS/FedEx/OR if Signature Req’d Documents)
3000 Citrus Circle
Suite 207 – West Wing         [ Click For MAP TO OUR OFFICE]
(925) 934-6320
————————-
San Francisco Office
425 Market Street
22nd Floor                               [  Click For MAP TO OUR OFFICE]

(800) 464-6595
 ————————————————-
E-Mail:            mailto:rexcrandell@astound.net
Internet:           http://www.rexcrandell.com
Internet:           http://www.taxrexcrandell.com
Fax:                           (925) 934-6325
 ————————————————-
All U.S. Mail items [Except if Signature is required]:
P.O. Box 30305- Dept.  Tax News Online
Walnut Creek, California 94598-9305 United States of America
____________________________________________________________________________

.

.

.

You can ignore any possible advertisements beyond this line.
They are not controlled by the authors of this news story.

.

.

%d bloggers like this: