In July 2015, the California Governor’s Office of Business and Economic Development (GO-Biz) launched the California Business Portal, a one-stop website for business owners to find information and assistance regarding operating a business in the state of California. It provides information to business owners regarding starting a new business, obtaining permits and licenses, various tax incentives, local resources and more. Click here to view the new portal.
As part of the continued roll out of the Affordable Care Act, beginning in 2015 large employers must file Forms 1094-C and 1095-C with the IRS. A large employer is typically one with 50 or more full-time and full-time equivalent employees. The information returns are due by February 29, 2016 or March 31, 2016 if filing electronically.
- Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
- Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
Even though employers with 50 to 99 full-time employers are not subject to the employer mandate for health insurance coverage until 2016, they are still required to comply with the reporting requirements for 2015. Additional information can be found on IRS.gov.
A little known and very under-publicized change to the insurance tax laws that took place on January 1, 2014, has exposed employers to a potentially heavy excise tax if they reimburse employees for health insurance premiums vs. enrolling in group plans. This includes employee shareholders.
Employer reimbursements or direct payment of health insurance premiums for individual policies or coverage under a spouse’s policy may be deemed a group health plan subject to the Affordable Care Act’s (ACA) market reforms if they are made for more than 1 employee. The deemed group health plan would not comply with the ACA’s benefit mandates for group health coverage and would be subject to excise taxes of $100 per day, per employee with no limit.
While the new […]
As a result of new legislation (the “Trade Preferences Extension Act of 2015,” passed by congress and signed by President Obama into law on June 29, 2015), penalties for failure to file information returns or to provide payee statements have been increased significantly. The new penalties are effective for 2015 forms that are due in early 2016.
Under Internal Revenue Code (IRC) Sections 6721 and 6722, the penalty applies to both failing to timely file a correct information return with the IRS (IRC Section 6721), and failing to furnish the payee a statement (IRC Section 6722). A penalty can be abated, however, if such failure is due to reasonable cause and not to willful neglect under the IRC Section 6724.
The most commonly used information returns […]
In a recent Tax Court decision, the court held that Ellen P. O’Neill’s time incurred while travelling to her rental properties to perform various tasks could be used as a way to prove her 750-hour threshold to qualify as a real estate professional. The ruling in this case contradict Truskowsky, a prior Tax Court case in which the court refused to count travel time because it represents commuting that “is an inherently personal activity and as such does not constitute ‘work’ in connection with a trade or business.” The Court noted that the taxpayer was aware of the record-keeping requirements to establish real estate professional status and found she provided detailed, accurate, day-to-day explanations of the specific activities in which she engaged. Based on this […]