winter 2014 edition - mspamt.org · affordable care act - individual shared responsibility...

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IRS links ….page 2 IRS links ….page 2 IRS links ….page 2 IRS links ….page 2 ACA Preparer Best Practice ...pages 3-5 NSA...page 6 NSA...page 6 NSA...page 6 NSA...page 6 MT News & FYI...pages 7-8 2015 Education dates w/contact info...page 9 2015 Education dates w/contact info...page 9 2015 Education dates w/contact info...page 9 2015 Education dates w/contact info...page 9 Hello from your editor & Helena contact...page 10 Updated Officer contacts...back cover Updated Officer contacts...back cover Updated Officer contacts...back cover Updated Officer contacts...back cover WINTER 2014 NEWSLETTER

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Page 1: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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

Page 2: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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

Page 3: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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?

Page 4: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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.

Page 5: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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

Page 6: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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

Page 7: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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.

Page 8: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

“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”

Page 9: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

Contact Information for Education:

Gloria Albright

PO Box 20296

Billings MT 59104

(406) 656-1643

[email protected]

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

[email protected]

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)

Page 10: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

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

[email protected]

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

Page 11: WINTER 2014 EDITION - mspamt.org · Affordable Care Act - Individual Shared Responsibility Provision – § 5000A Return Preparer Best Prac ces Note: There are no special or specific

VICE PRESIDENTVICE PRESIDENTVICE PRESIDENTVICE PRESIDENT

CORA ARNOLD

750 2nd St W Ste A

Whitefish MT 59937

(406)863-2668

[email protected]

DIRECTORDIRECTORDIRECTORDIRECTOR

BECKY SPENCER, EA

121 Grand Ave

Billings MT 59101

(406)248-3859

[email protected]

DIRECTORDIRECTORDIRECTORDIRECTOR

ELANIE MITCHELL

205 W Main St

Cut Bank MT 59427

(406)873-2672

[email protected]

PRESIDENT PRESIDENT PRESIDENT PRESIDENT

GLORIA ALBRIGHT, EA

1643 24TH St W Ste 312

Billings MT 59102

(406)656-1643

[email protected]

TREASURERTREASURERTREASURERTREASURER

GARY KASPER, EA, LPA

PO Box 308

Fairfield MT 59436

(406)467-2410

[email protected]

PAST PRESIDENTPAST PRESIDENTPAST PRESIDENTPAST PRESIDENT

DIRECTORDIRECTORDIRECTORDIRECTOR

VAN BARRON, CPA

1417 Helena Ave

Helena MT 59601

(406)442-9443

[email protected]

MARY LEMONSMARY LEMONSMARY LEMONSMARY LEMONS

NSA STATE DIRECTOR

PO Box 470

Darby, MT 59829

(406)821-3362

[email protected]

DIRECTORDIRECTORDIRECTORDIRECTOR

DUANE McCULLOUGH

3570 East Shore

Helena MT 59602

(406)475-3052

[email protected]

DIRECTORDIRECTORDIRECTORDIRECTOR

BRENT BUSHNELL

1402 Cayuse Rd

Helena MT 59602

(406)443-0690

[email protected]

Montana Society of

Public Accountants

1018 W Custer Ave Suite 1

Helena, MT 59602

(406)442-1700

Fax (406)442-6008

Email:

[email protected]

Website:

http:/www.mspamt.org