Is my small business required to file Form 1095?

Posted Leave a commentPosted in Employee Benefits, Health Insurance, Small Business, Taxes

Form 1095 is a new informational tax return that is a requirement incorporated into of the Affordable Care Act. Some small businesses are required to file it for the first time this season. There are three types of Form 1095: 1095A from a Health Insurance Marketplace 1095B usually from an employer (the form discussed below […]

Changing opinions on small business health plan penalty taxes

Posted 1 CommentPosted in Employee Benefits, Small Business, Taxes

Section 4980D small business excise taxes on Form 8928: which penalty applies? My article about Section 4980D excise tax penalties (NJ CPA magazine article on 4980D penalties) was written late last summer summer (in 2015) but published last week (in 2016). The risk of print media in a fast-paced topic like tax procedure is that it can […]

“My accountant disappeared”

Posted Leave a commentPosted in Accounting, Small Business, Taxes

This is the time of year when many individuals find out that, for some reason, the person who prepared their financial statements or tax returns in the past is no longer available. Self employed CPAs, accountants, tax preparers change their business circumstances with surprising frequency. Some speculate that they are simply sucked into a black […]

Three tips for wage tax do-it-yourselfers

Posted Leave a commentPosted in Accounting, Employee Benefits, Small Business, Taxes

Here are three tips if you prepare your own W2 and 1099 forms for your small business: The first tip is that there is no need to purchase the stock forms from an office supply store. The forms are available for free from IRS at https://www.irs.gov/Businesses/Online-Ordering-for-Information-Returns-and-Employer-Returns . The second tip is don’t do this again! If you […]

My two rules about tax preparation fees

Posted Leave a commentPosted in Computers and Internet, Small Business, Taxes

My tax return preparation fees are bench-marked with published industry averages to ensure that I won’t be the least expensive and won’t be the most expensive. Two specific rules that I follow about tax return preparation fees: If your question about the fee is our first topic of conversation then I won’t be the person preparing […]

S-Corporation owner/employee health insurance

Posted Leave a commentPosted in Employee Benefits, Health Insurance, Small Business, Taxes

Tax treatment of health insurance for owner/employees of S-Corporations has always been, and continues to be, a confusing issue. The controlling authority is Rev. Proc. 2014-41 that provides guidance to compute the business deduction (IRC §162) for health insurance costs for self-employed individuals and the premium tax credit allowed under (IRC§ 36B). IRS Notice 2015-17 provides assurance […]

4980D Small Business Excise Tax Liability

Posted 3 CommentsPosted in Accounting, Employee Benefits, Small Business, Taxes

This is the original submitted version of the article published by New Jersey CPA magazine under the same title in the January 2016 edition. The published version was slightly shortened to meet space requirements in the print publication. Background The Affordable Care Act adds Section 9815 to the Internal Revenue Code that requires employer-provided health plans […]

Tax preparation fees for 2015 tax returns

Posted 2 CommentsPosted in Accounting, Taxes

(This post is for 2015. For 2016 tax return average rates, see this schedule). I’ve drawn some attention lately, both positive and negative, for my two personal beliefs that: a) tax preparation industry fees should be bench-marked in some manner, and, b) that fees ought to be available to consumers in advance of making a […]

Tax preparation fees represent the “wild west” of the financial services industry

Posted Leave a commentPosted in Taxes, Values

We are just three weeks away from the opening of a new tax filing season and so the subject of disclosure of tax preparation fees comes up again. My opinions differ sharply from the mainstream of the tax preparation industry. The tax preparation industry may be the last bastion of “let the buyer beware” free […]

News: 2015 small businesses health plan tax filing extension

Posted 1 CommentPosted in Employee Benefits, Small Business, Taxes

This article summarizes the issues that apply to small business employers only. See the IRS publication for provisions of Notice 2016-4 that pertain to larger employers. Small business employers who provide health benefits outside of an insurance policy have a two month extension on reporting those benefits to employees and a three month extension for […]