Posts Tagged ‘Patient Protection and Affordable Care Act’

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Representative Please!

In Accounting & Finances,Business,Education,Taxes on October 7, 2013 by Sufen Wang Tagged: , , , , , , ,

MH900056119TIGTA Audit Ensures Taxpayers’ Rights are Front and Center

Did you know IRS personnel are required to stop an interview if the taxpayer wants to consult with a representative and they also can’t bypass a representative without supervisory approval?

MH900251655If you didn’t know, the Treasury Inspector General for Tax Administration (TIGTA) has your back. Each year TIGTA hones in on an IRS office that regularly interacts with taxpayers and their representatives. This time around they scrutinized the folks who work in the Office of Appeals to make sure they’re contacting taxpayer representatives during key actions. The results of that audit, the Fiscal Year 2013 Statutory Review of Restrictions on Directly Contacting Taxpayers, are in and…

 MH900442430..the Office of Appeals did so-so. In 11 of 96 sampled cases (out of 72,239 total cases closed by Appeals), Appeals personnel skipped major steps. They either tried to call the taxpayer directly or didn’t send copies of very important papers to the authorized representative. It’s possible that those who broke the rules just made honest mistakes – maybe they were in a hurry to get home for dinner – but the policies are in place for the taxpayer’s protection.

And, what’s more, the bigwigs in the Appeals office didn’t do their part to ensure that the workers were following procedure. Accordingly, TIGTA offered some stern advice: the Chief of Appeals should “provide additional guidance to first-line managers and Appeals personnel that will reinforce the importance of ensuring that taxpayer representatives are involved in all case activities.” In other words, put in work at the top of the line so all the proper paperwork gets done down the line.

MH900289960Of course the IRS agreed with TIGTA’s recommendation. The agency’s first move will be to update the Internal Revenue Manual and front-line managers will have homework to do to brush up on their responsibilities. If you want more reading material yourself, check out the full Statutory Review here: http://www.treasury.gov/tigta/auditreports/2013reports/201330080fr.html

Sufen Wang, M.S. Accountancy

Wang Solutions, Long Beach, CA (562) 856-0793

Editor: Hannah Huff, M.F.A. Creative Writing: Poetry, (626) 806-5805

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The Joy of Adoption:

In Accounting & Finances,Culture,Education,Family,Taxes on March 30, 2012 by Sufen Wang Tagged: , , , , , , ,

Now with an Added Bonus from the IRS

Have you read the tabloids lately? Brangelina is having another baby! No, not adoption this time, but for those adoptive parents out there who need extra money, here are some IRS tips on taxes and credits.
 
With adoption, comes responsibility – and lots of bills. Luckily, if you paid expenses to adopt an eligible child in 2011, you have even more to be excited about than just a new member of your household. Say hello to an expanded adoption credit. The Affordable Care Act increased the credit to a maximum $13,360 and made it refundable. In other words, you can get the adoption credit as a tax refund even after your tax liability has been reduced to zero.
 
Of course, there’s always fine print when money is at stake. While you may consider the Chihuahua you rescued from the animal shelter to be your baby, the IRS defines an eligible child as “under 18 years old, or physically or mentally incapable of caring for himself or herself.” And those expenses don’t refer to the big screen TV you bought on the way to the courthouse. They mean adoption fees, court costs, attorney fees – basically all the “reasonable and necessary expenses” directly related to the legal adoption. One more qualification: if you are rich like (Brangelina), then you are out of luck. Anybody with a modified AGI of $225,210 or higher cannot receive the credit.
 
Unfortunately, getting the credit requires actual paperwork. Yes, you read that right. You must file a paper tax return, Form 8839, Qualified Adoption Expenses, and attach documents supporting the adoption. No, a hand-written note on a piece of binder paper doesn’t count as a supporting document. The IRS wants you to include stuff like a final adoption decree or a placement agreement from an authorized agency. All of this doesn’t mean you can’t use IRS Free File or other software to prepare your returns first. However, you must eventually print your returns and mail them if you want the IRS to show you the money.

So, for those of you with a big heart and an ache to have children running around the house, adopt away!  Hope this article helps the road to adoption a little easier….

On the Money,
Sufen Wang
Wang Solutions
 

 

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The Affordable Care Act Gets a Check-Up…

In Accounting & Finances,Business,Insurance & Liability,Taxes on August 29, 2011 by Sufen Wang Tagged: , , , ,

IRS Prescribes Premium Tax Credit Regulations
 
There’s some good news and bad news this month. The good news is that the IRS proposed regulations on August 12 for health care premium tax credits – which means affordable healthcare is one step closer to becoming a reality. The bad news is that the IRS proposed regulations for health care premium tax credits – which means you might be ineligible to receive them.
 

The health insurance premium tax credits were created under the Patient Protection and Affordable Care Act (ACA) of 2010. When the ACA goes into effect in 2014, individuals who are unable to access affordable health insurance through their employers will be able to buy insurance through state-run insurance exchanges. The tax credit is geared toward lower and middle-income individuals who can’t afford to pay their premium costs out-of-pocket.

Of course, calculating the credits will be another task for tax return preparers…..

So who exactly can get the tax credit? The IRS regulations say you must be an applicable taxpayer with a household income between 100 percent and 400 percent of the federal poverty line. That’s about $22,350 to $89,400 for a family of four. Applicable also means you can’t be claimed as a dependent by another taxpayer and if you’re married, you have to file a joint return. The tax credits will average $5,000 per individual.

You also won’t be eligible if you have “minimum essential coverage” available through your employer. Under the ACA, businesses with more than 50 full-time workers over the course of a year will face tax penalties of up to $3,000 per employee if they fail to offer affordable coverage (the regulations help define affordable). Employers must report which employees are not covered by insurance and are thus eligible to participate in health insurance exchanges.

The IRS wants to hear what you think about the proposed regulations! Give them a piece of your mind by October 31:

 http://www.regulations.gov/ 

via e-mail at E-OHPSCA2715.EBSA@dol.gov.

On the Money,
Sufen Wang
Wang Solutions