ACA Replacement Bill Proposed

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On Jan. 24, Sen. Rand Paul introduced the “Obamacare Replacement Act.” The bill would repeal the individual and employer mandates and other ACA provisions; provide a 2-year open-enrollment period under which people with pre-existing conditions could obtain coverage; provide an income and payroll tax deduction for health insurance costs; remove the maximum contribution limit for HSAs; and offer a tax credit of up to $5,000 per taxpayer for HSA contributions. There are other ACA replacement options proposed by Republican lawmakers.

Smaller premium tax credits (PTCs) ahead?

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The Centers for Medicare and Medicaid Services (CMS) has proposed changes to health insurance marketplaces, effective in 2018, which could result in reduced PTCs for low-income taxpayers. Taxpayers who meet low-income requirements and have enrolled in a health insurance marketplace plan may qualify for PTCs. Proposed CMS regulations alter the way PTCs are calculated. If enacted, the changes would provide a lower level of benefits, which could result in lower premiums and lower PTCs.

TIGTA Report Praises Identity Theft Work

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An audit from the Treasury Inspector General for Tax Administration (TIGTA) commended the IRS for recognizing the effect identity theft has on tax administration and for its efforts to improve detection and prevention. Tax identity theft occurs when an individual uses another person’s name and taxpayer ID number to file a fraudulent return and claim a refund. The IRS’s strategies have “led to many notable improvements,” but the types of identity theft schemes continue to “evolve and become more sophisticated,” TIGTA stated. The report is here

Husband couldn’t file joint tax return on behalf of allegedly “delusional” spouse

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The U.S. Tax Court has concluded that a husband who alleged that his wife was mentally ill wasn’t entitled to file his return with “married filing jointly” status. The husband had no formal power of attorney or similar authorization and couldn’t claim that he’d properly filed a joint return with his wife as her agent. The wife, who refused to sign the joint return, filed a return for the year in question as “married filing separately.”