Category: Affordable Care Act
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Preserving right of claim for 2016 tax returns
The hottest topic in tax planning right now is the protection of right to claim a refund for 2016. It’s likely a hot of hot air about nothing. Beginning on 2016 wealthy people paid additional taxes mandated by the Affordable Care Act. If the Affordable Care Act is deemed unconstitutional, then theoretically the taxes it…
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Three changes to small business health plans for 2019
Small business employers who choose to offer health benefits to employees will find more options available in 2019 under rules proposed late last year for adaptation this year. The IRS and Treasury Department clarified that employers who meet other conditions will be allowed to offer reimbursement of individual health insurance on a tax-free basis. These…
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Five economic forecasts for small business in 2019
A decade ago I probably would have said that there is little value to a small business adviser in attempting macroeconomic and political forecasts. But over this most recent decade I’ve watched shifting macroeconomic conditions wipe out over two million dollars of personal net worth and put one of my businesses into idle for over…
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The new state health insurance mandates – why this is the most important financial planning issue today
So far three states – New Jersey, Massachusetts and Vermont – have passed laws that add a health insurance mandate with tax penalty for not having coverage. The new laws kick in when the federal insurance mandate law expires in 2019. Other states are considering similar laws. Some things are not clear yet: – what…
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Ignoring tax and insurance law is a big deal
The announcement today by Jeff Sessions that the U.S Justice Department will not defend parts of federal tax and insurance law related to health insurance is a big deal but not only for the reasons that most news reports (like this report from Reuters on the bizarre legal logic that the law is unconstitutional) are focusing…
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Avoid IRS penalties with assertive strategies
Many of the penalties that IRS asserts on individual taxpayers and small businesses can be avoided with the right strategic response. Some or the penalty waiver procedures are straightforward, while some are not. Yet the strategies are not always apparent and sometimes even seasoned tax professionals are surprised by the favorable results. Tax penalties that…
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HRA for spouse of business owner?
(This inform is not updated to reflect 2019 proposed regulations so should be presumed to be partially obsolete). Can a business with only one employee – the spouse of the sole proprietor – be eligible for a Health Reimbursement Arrangement? I can not give that assurance but at least one popular tax speaker says that…
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2018: The year for a Health Reimbursement Arrangement (HRA)
(This inform is not updated to reflect 2019 proposed regulations so should be presumed to be partially obsolete). Summary: Small businesses with middle-income employees may use a Health Reimbursement Arrangement (HRA) to help cover out-of-pocket medical costs or individual insurance premiums as one of the easiest ways to cut 2018 taxes at minimal administrative and setup…
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Overview of post-ACA federal health insurance law affecting small businesses
After the sweeping changes brought by the Affordable Care Act of 2010 that were phased in over the following several years, these federal actions then further molded small business health benefit plans: IRS Notice 2013-54 – restrictions on employer health care reimbursements not coordinated with ACA insurance plans. IRS Notice 2015-17 – restricts an employer…
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The latest on small business health plans
With all of the tax hubbub lately small business owners and their advisors have had a tough time keeping up with all of the changes. Small business health plans have evolved through a rapid succession of changes over the past year and a half. Yet relatively few employers have taken the time to sort through…