• ACA Reporting Relief for Employers

    27 January 2016
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    Are you currently an employer? With new requirements on filing forms with employees, there is at least some form of relief. Beginning the 2015 tax year, Applicable Large Employers (ALEs) are required file Forms 1095-C and 1094-C with the IRS and provide a copy of the 1095-C to each of their employees. An ALE is generally an employer with 50 or more equivalent full time employees (EFTEs) in the prior year. Even though ALE’s with 99 or fewer EFTEs are not subject to the insurance mandate for 2015, they are subject to the 1094-C and 1095-C filing requirements for 2015.

    Because this is the first year for this requirement, the IRS has decided to provide first year (2015) filing relief for Forms 1095-B and 1095-C. The due dates for furnishing these forms are extended. First, The due date for providing the 2015 Form 1095-B and the 2015 Form 1095-C to the insured and employees is extended from February 1, 2016, to March 31, 2016. Second, The due date for health coverage providers and employers to furnish the 2015 Form 1094-B and the 2015 Form 1094-C to the IRS is extended from February 29, 2016, to May 31, 2016 if not filing electronically. Lastly, The due date for health coverage providers and employers electronically filing the 2015 Form 1094-B and the 2015 Form 1094-C with the IRS is extended from March 31, 2016, to June 30, 2016.

    While the IRS is prepared to accept information reporting returns beginning in January 2016, employers and other coverage providers who can’t meet the original deadlines are encouraged to furnish statements and file the information returns as soon as they are ready.

    The information provided to individuals on their copy of Form 1095-B or 1095-C is generally used to confirm that the individual had minimum essential coverage (and thus avoid the penalty that applies when not covered for the full year). However, with the extension of the filing dates for these forms, individuals may not have the forms in hand before filing their 2015 returns. For 2015 only, individuals who rely on other information received from their coverage providers about their coverage for purposes of filing their returns need not amend their returns once they receive Form 1095-B or Form 1095-C or any corrections, according to the IRS.

    Likewise, individuals who, when filing their 2015 income tax returns, rely upon other information received from employers about their offers of coverage for purposes of determining eligibility for the premium tax credit need not amend their returns once they receive their Forms 1095-C or any corrected Forms 1095-C.

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  • December 2015 Tax Due Dates for Individuals

    8 December 2015
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    Have a merry month – and not a stressful month – with these December tax deadline tips from Dagley & Co! Image via public domain.

    December  – Time for Year-End Tax Planning

    December is the month to take final actions to affect your 2015 taxes. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2015 should get in touch with us at Dagley & Company for a tax planning consultation appointment. In case you need more reasons, do read our special post from Black Friday about why we may be the perfect accounting firm for you!

    December 10 – Report Tips to Employer

    If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

    December 31 – Last Day to Make Mandatory IRA Withdrawals

    Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you turned age 70½ before 2015. If the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.

    December 31 – Last Day to Pay Deductible Expenses for 2015

    Last day to pay deductible expenses for the 2015 return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2015). Taxpayers who are making state estimated payments may find it advantageous to prepay the January state estimated tax payment in December (Please call the office for more information).

    December 31 – Where did the time go?! Last Day of the Year!

    If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.

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  • October 2015 Tax Due Dates for Individuals

    2 October 2015
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    Obviously April 15 is widely regarded as the all-important “tax day,” but October is also an extremely important month for tax deadlines. It’s been 6 months since they were due – and if you filed for an extension or just forgot to do them, your time is up on October 15. Here is a run down of the important October 2015 tax due dates for individuals (and check back next week when we cover deadlines for business owners):

    October 13 – Report Tips to Employer

    If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 13. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

    October 15 – Individuals

    If you have an automatic 6-month extension to file your income tax return for 2014, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, and penalties due.

    October 15 – SEP IRA & Keogh Contributions

    Last day to contribute to SEP or Keogh retirement plan for calendar year 2014 if tax return is on extension through October 15.

    October 31 – Set a tax appointment with Dagley & Co.

    What’s scarier than Halloween? Owing the government a lot of money! The end of the year will be here before you know it. Contact Dagley & Co. soon to set up a tax appointment with us! You’ll find our information at the bottom of this page.

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