winter 2014 edition - mspamt.org · affordable care act - individual shared responsibility...
TRANSCRIPT
IRS links ….page 2IRS links ….page 2IRS links ….page 2IRS links ….page 2
ACA Preparer Best Practice ...pages 3-5
NSA...page 6NSA...page 6NSA...page 6NSA...page 6
MT News & FYI...pages 7-8
2015 Education dates w/contact info...page 92015 Education dates w/contact info...page 92015 Education dates w/contact info...page 92015 Education dates w/contact info...page 9
Hello from your editor & Helena contact...page 10
Updated Officer contacts...back coverUpdated Officer contacts...back coverUpdated Officer contacts...back coverUpdated Officer contacts...back cover
WINTER 2014
NEWSLETTER
NEWS
&
links
SSSS
RRRR
IIII NEW MILEAGE RATES
FOR 2014:
http://
www.irs.gov/2014-
Standard-Mileage-
Rates-for-Business,-
Medical-and-Moving-
Announced
Very Important informa�on to
use on this season to assist in
ACA requirements...NEXT PAGE
My Social Security online account. Opening an online personal account is as easy as 1-
provide some personal informa�on & answer some ques�ons. 2-step up a username &
password to access your online account. This process keeps personal Social Security in-
forma�on private.
With a my Social Security account, members of the public with internet access can obtain
benefit verifica�on informa�on, update their personal informa�on and start or change
direct deposit of their benefit payment.
Even if an individual does not receive benefits, they may use my Social Security online ac-
count to review their Social Security statement, earnings record & es�mates of re�re-
ment, disability, and survivors benefits.
Go to www.socialsecurity.gov/myaccount
Affordable Care Act - Individual Shared Responsibility Provision – § 5000A
Return Preparer Best Prac ces
Note: There are no special or specific due diligence requirements related to Affordable Care Act (ACA) issues. This docu-
ment represents best prac�ces for prac��oners to gather necessary informa�on to use in preparing 2014 tax returns for
their clients, including informa�on that may be helpful to demonstrate compliance with the ACA’s new health coverage
requirements. General requirements on filing a complete and accurate tax return con�nue to apply. Preparers are ex-
pected to resolve conflic�ng or contradictory statements from their clients during the return prepara�on process, as they
do today.
Under the individual shared responsibility provision of the ACA, all individuals are required to have qualifying health care
coverage (called minimum essen�al coverage), qualify for an exemp�on, or make an individual shared responsibility pay-
ment, or SRP, with their Federal income tax returns.
Sec�on 1: Did your client have qualifying health care coverage for all members of their tax household (which includes
the client) for the full year? If your client and all members of their tax household did not have qualifying coverage for
the en�re year, did they have coverage for part of the year?
1. If yes, review your client’s documenta�on to determine what por�on of the tax year they had qualifying health care
coverage for all members of their tax household. Documenta�on may include:
o Any Form 1095 and/or
o Form W-2 and/or
o Other documenta�on that may substan�ate coverage, such as:
• Medical bills showing that during the tax year an amount due was paid by a health insurance
company (indicates coverage)
• Documenta�on/statement from an employer indica�ng health insurance coverage
• Medicare card
• Record of advance payments of the premium tax credit
2. If no, go to sec�on 2.
Sec�on 2: For any month that your client or a member of their tax household did not have qualifying coverage, did they
apply for a health coverage exemp�on from the Marketplace (also known as an Exchange)?
1. If yes, was an Exemp�on Cer�ficate Number (ECN) received from the Marketplace for each individual in the tax
household?
o If yes, report the ECN in Part I of Form 8965.
o If no, see the Instruc�ons to Form 8965 to find out how to report pending exemp�on applica�ons.
2. If no, go to sec�on 3. Note that certain health coverage exemp�ons are available only from the Marketplace.
Sec�on 3: Does your client or member of their tax household qualify for an exemp�on that may be claimed
on their tax return filed with the IRS?
There are several exemp ons that eligible individuals may claim on their tax returns without visi ng the
Marketplace. These exemp ons include:
*Member of an Indian Tribe – this category includes members of Federally-recognized Indian tribes and
other individuals who are eligible for services from an Indian health care provider including the Indian Health
Service. Suppor�ng proof may include statement from a Federally-recognized Indian tribe or other indica�on
of membership (e.g., an ID card), or documenta�on showing services received from an Indian health care facili-
ty.
*Member of a Health Care Sharing Ministry (HCSM) – In general, a HCSM is a tax-exempt organiza�on
whose members share a common set of ethical or religious beliefs and share medical expenses in accordance
with those beliefs, even aHer a member develops a medical condi�on. Suppor�ng proof may include a state-
ment from the HCSM providing the name and loca�on of the HCSM and indica�ng your client’s membership.
* Incarcerated Individuals – this category includes individuals who were incarcerated in a jail, prison, or
similar penal ins�tu�on aHer the disposi�on of charges. Suppor�ng proof may include a statement indica�ng
the individual’s prisoner ID number and the name and loca�on of the jail or prison, or court records detailing
the individual’s incarcera�on.
*Short Coverage Gap – this exemp�on may apply if the individual lacked qualifying coverage only for
less than 3 consecu�ve calendar months. If the gap in coverage was more than 3 months, the individual does
not qualify for this exemp�on. Only one short coverage gap exemp�on may be claimed in a year.
* Not Lawfully Present – this category includes individuals who are not lawfully present in the U.S. and
individuals who are not present in the U.S. long enough to be treated as resident aliens for tax purposes.
*Below the Filing Threshold – this exemp�on applies if the individual cannot be claimed as a dependent
by someone else and the individual’s gross income is low enough that they are not required to file a tax return.
Eligible individuals are not required to file a return solely to claim this exemp�on.
* Certain Hardship Exemp�ons – there are several hardship exemp�ons that may be claimed with a tax
return without first applying for the exemp�on from the Marketplace. See No�ce 2014-76 for a complete list
of these hardship exemp�ons.
*Ci�zens Living Abroad or in a United States Territory – all bona fide residents of a foreign country or a
United States territory are treated as having minimum essen�al coverage and, thus, are effec�vely exempt
from the individual shared responsibility provision.
1. If yes, complete Part II or III of Form 8965 and aMach it to the applicable Form 1040 series return.
2. If no, unless some form of 2014 transi�on relief applies, your client must calculate and pay the SRP.
Use worksheets provided in the instruc�ons to Form 8965 to calculate the amount of the SRP due. With appro-
priate taxpayer consent, obtain copies of the tax return(s) for all members of the tax household who have a
filing requirement. Informa�on on those returns is needed to calculate the amount of the SRP due. The SRP is
based, in part, on household income (HHI). HHI is the sum of the modified adjusted gross income (MAGI) of the
primary taxpayer and the MAGI of all other members of the tax household with a filing requirement. MAGI for
purposes of the SRP is adjusted gross income plus tax-exempt interest and excludable foreign earned income.
See the instruc�ons to Form 8965 for more informa�on.
This is most important:
We will all be given a 1095-A from the
Marketplace if insurance was purchased
through the Marketplace in 2014.
This informa�on statement includes the month-
ly premium for the applicable SLCSP used to
compute the credit, the total monthly premium
for the coverage of the taxpayer or family mem-
ber, the amount of the advance credit pay-
ments, the SSN and names for all covered indi-
viduals, and all other required informa�on.
Use the informa�on on Form 1095-A to
compute the taxpayer’s premium tax credit on
their 2014 tax return and to reconcile the ad-
vance credit payments made on their behalf
with the amount of the actual premium tax
credit on Form 8962.
**IF FORM 1095-A WAS LOST OR NEVER RE-
CEIVED, ADVISE THE TAXPAYER TO CONTACT
THE MARKETPLACE FOR A COPY
This is the BEST publica�on I found & since it’s 20+ pages, I have pasted
link PLEASE go have a look. It is a VITA publica�on that is very well or-
ganized!!
www.irs.gov/pub/irs-pdf/p5157.pdf
Gree�ngs Montana! I appreciate this opportunity to introduce myself. I was elected Gover-
nor of District IX at the NSA Conven�on in Indianapolis. I have been a member of NSA since
1978 and have served on many commiMees and also been NSA State Director for Alaska.
I am one of four partners in a Tax & Accoun�ng firm in Fairbanks Alaska. I am an EA, ABA and
a Fellow of the Na�onal Tax Prac�ce Ins�tute. I have been prac�cing for over forty years.
Three years in California and the rest in Alaska.
As District IX Governor I would like to help you with any NSA issues or ques�ons you are hav-
ing difficulty with. I invite you to contact me any�me you think I might be able to help. Our
next NSA board mee�ng will be May 2015 but there are telephonic mee�ngs in between and I
can be in touch with staff any�me. So do not hesitate to let me know if there is something I
can help with.
I know several Montana members already and look forward to the opportunity to meet many
more in the future.
As we are approaching the close of this year, 2014, and the beginning of another busy tax sea-
son I wish you all much success and hope it will be crisis free. I hope you all had a wonderful
Thanksgiving, Christmas and New Year. Stay safe and take care.
BernadeMe C. Koppy, EA ABA
Governor, District IX
MTMTMTMT
NEWS YOU NEWS YOU NEWS YOU NEWS YOU
CAN USE...CAN USE...CAN USE...CAN USE...
MT Department of Revenue Steps to take if you or your client disputes no�ce of assessment, no�ce of dis-
allowance of a claim for refund, or other determina�on or decision by the DOR.
Use: POA form to authorize one or more individuals to represent you before the DOR:
www.revenue.mt.gov/portals/9/tax_professionals/POA.pdf
Request for Informal Review MUST be in wri�ng and filed within 30 days of the date on the no�ce of ac�on
that you are challenging. If you do not file an objec�on with 30 days, we will consider it to be your or your
clients admission that you agree with the adjustment. Use form APLS101F:
www.revenue.mt.gov/portals/9/taxappeal_process/appeal_forms/APLS101F.pdf
No�ce of Referral to the Office of Dispute Resolu�on form MUST be filed within 15 days of the date on the
no�ce of the final determina�on. Use form APLS102F:
www.revenue.mt.gov/portals/9/taxappeal_process/appeal_forms/APLS102F.pdf
If you are reques�ng a waiver of penal�es and/or interest, all the following apply:
15-1-206. Waiver and abatement of penal�es -- interest. (1) The department may, in its discre�on, waive
the assessment of penalty for the late filing of any tax statement or return required to be filed with the de-
partment when the filing is done within 5 days of the date specified for filing the return or statement and
for the late payment of any tax collected by the department when the payment is made within 5 days of
the date specified for payment of the tax.
(2) Whenever the department waives or abates a penalty provided for in this �tle, it also may, in its dis-
cre�on, waive or abate interest not to exceed $100 due upon the tax.
(3) Whenever the department is no�fied of a change in federal taxable income as the result of a federal
adjustment or upon filing an amended federal return, as provided for in 15-30-304, the department shall
abate the interest on the addi�onal tax liability from the date the department is no�fied un�l the depart-
ment sends the statement of increased tax liability to the taxpayer.
“RESIDENCY” OR “DOMICILE” FOR INCOME TAX PURPOSES
Key phrases from statues:
**“It is the place where a person remains when not called elsewhere for labor or other
special or temp purpose and to which the person returns in seasons of repose.”
**”If a person claims a residence within Montana for any purpose, then that loca�on is
the person’s residence for all purposes unless there is a specific statutory excep�on”
**”A residence cannot be lost un�l another is gained”
***The residence can be changed only by the union or act and intent”
***”...includes…(a) person who maintains a permanent place of abode within the state
even though temporarily absent from the state and who has not established a residence
elsewhere”
Contact Information for Education:
Gloria Albright
PO Box 20296
Billings MT 59104
(406) 656-1643
October 19th-20th Gear-Up 1040 16hrs
Ethics 19th 2hrs
October 21st Business Entities 8hrs
October 22nd MT update 8hrs
Billings, MT Grand Slam
**Further details next newsletter**
Cora Arnold
750 2nd St W Ste A
Whitefish, MT 59937
(406) 863-2668
July 23rd, 2015 July Liaison
Helena, MT
November 2nd, 3rd & 4th Jennings 2-day 1040 update & 1-day Advanced Business Tax Issues
Missoula, M T
**Further details next newsletter**
(education on website is under construction)
In order to correctly apply any payments for membership, seminars,
continuing education, or any monies associated with MSPA, PLEASE
send to:
MSPA
c/o Gary Mariegard, Executive Secretary
1018 W Custer Suite 1
Helena, MT 59602
I wish everyone a prosperous New Year. Seems a few people have
recorded the IRS phone scammers...this is hilarious...even one call
recipient is of Indian decent & the phone scammer thinks he is
mocking him...and some other funnies...enjoy, laugh & relax before
season.
via links below: unfortunately I strayed a bit so have laugh on
me….be sure sound is on!!!
https://www.youtube.com/watch?v=ChkNGpU2Rk8
https://www.youtube.com/watch?v=u-qjtKZz9F8
VICE PRESIDENTVICE PRESIDENTVICE PRESIDENTVICE PRESIDENT
CORA ARNOLD
750 2nd St W Ste A
Whitefish MT 59937
(406)863-2668
DIRECTORDIRECTORDIRECTORDIRECTOR
BECKY SPENCER, EA
121 Grand Ave
Billings MT 59101
(406)248-3859
DIRECTORDIRECTORDIRECTORDIRECTOR
ELANIE MITCHELL
205 W Main St
Cut Bank MT 59427
(406)873-2672
PRESIDENT PRESIDENT PRESIDENT PRESIDENT
GLORIA ALBRIGHT, EA
1643 24TH St W Ste 312
Billings MT 59102
(406)656-1643
TREASURERTREASURERTREASURERTREASURER
GARY KASPER, EA, LPA
PO Box 308
Fairfield MT 59436
(406)467-2410
PAST PRESIDENTPAST PRESIDENTPAST PRESIDENTPAST PRESIDENT
DIRECTORDIRECTORDIRECTORDIRECTOR
VAN BARRON, CPA
1417 Helena Ave
Helena MT 59601
(406)442-9443
MARY LEMONSMARY LEMONSMARY LEMONSMARY LEMONS
NSA STATE DIRECTOR
PO Box 470
Darby, MT 59829
(406)821-3362
DIRECTORDIRECTORDIRECTORDIRECTOR
DUANE McCULLOUGH
3570 East Shore
Helena MT 59602
(406)475-3052
DIRECTORDIRECTORDIRECTORDIRECTOR
BRENT BUSHNELL
1402 Cayuse Rd
Helena MT 59602
(406)443-0690
Montana Society of
Public Accountants
1018 W Custer Ave Suite 1
Helena, MT 59602
(406)442-1700
Fax (406)442-6008
Email:
Website:
http:/www.mspamt.org