Stamp Out Tax Season Stress!

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Are you ready for tax time? There are a couple of steps you can take now to alleviate some of the stress of filing your return. Plan to get organized early. Begin by putting together a tax folder with W-2s from your employer, 1099s for other income you may have earned, bank and other financial statements and receipts for things like medical bills and charitable donations. A helpful video from the American Institute of CPAs offers more information on the best ways to get ready now and throughout the year. If you receive an organizer from us, you have either received it or will be in your mailbox this week.

Once you’ve gathered all your relevant paperwork, this is a good time to meet with us to talk about changes in your financial situation or in tax laws that may have an effect on your return. Having this discussion early is key to avoiding surprises at tax time and a superb time to get started on planning that can potentially minimize your tax bite and strengthen your financial situation. Call us today!

Additional details on removal of penalties for health plans for Small Businesses

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As we reported last month, employers with less than 50 employees can once again reimburse employees for individual health plans and other medical expenses without facing penalties. Now we’re starting to learn more specifics.

Employers must provide written notice of the plan to all employees. This year that notice must be given before March 12, 2017, due to the late timing of the law. In future years, the notice must be provided at least 90 days before the start of the year.

The notice must include the amount of the employee’s permitted benefit for the year. (Maximum of $4950 for Individual, and $10,000 for Family plan) A warning that employees must be covered for all months or will be subject to penalties & tax under Section 5000A. The employee must provide the program information to any Health Insurance Marketplace where they apply for an Advanced Credit.

The payments for reimbursements of medical expenses are deductible for the employer and not included as income for the employee.

Beware of Tax Scams!

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Did you know that con artists posing as Internal Revenue Service representatives frequently try to scam people out of their money? While this is a long-standing problem, the IRS has issued a new warning against thieves who may contact people on the phone or via email or a letter and try to trick them into divulging personal financial information, such as their Social Security or bank account numbers, or sending cash. And the scams can be tough to spot. Potential victims may see a fake caller ID that identifies the call as coming from the IRS or receive mail or email that appears to have the IRS letterhead or one like this that resembles the IRS website. The scammers typically try to intimidate victims into acting quickly—by, say, sending a payment to what they claim is an IRS address—by threatening arrest or some other consequence.

If you receive an IRS communication that seems suspicious or doesn’t make sense, please call our office. Whether you are facing a legitimate tax issue or a scam, we can help you sort through the details and determine how to respond. You can report incidents to the Treasury Inspector General for Tax Administration at 800-366-4484 or online. Remember, too, that the IRS website is www.irs.gov, so be on alert if you’re directed to another similar site that ends in .com or .net instead of .gov.

Pennsylvania plans Tax Amnesty

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Pennsylvania Department of Revenue recently announced a tax amnesty program for tax years ending 2015 and before. The program will allow delinquent taxpayers to pay tax between April 17, 2017, and June 19, 2017, without penalty and only 1/2 of the interest charges.

More than 30 taxes administered by the PA DOR are eligible for the program. Taxpayers who participated in the PA DOR amnesty program in 2010 are ineligible for this program.

If you have questions about the program, you can contact our office to determine your best course of action and eligibility.