2015 February : D.E. Rodrigues and Company

D.E. Rodrigues & Company Accounting Blog

February 2015

Review your reimbursement of employees' health insurance premiums

Written by Doug Rodrigues February 23, 2015

Employers who reimburse employees for their individual health insurance policies may find themselves in violation of the “market reform” restrictions in the ACA. The penalty for noncompliance with these restrictions is $100 per day, per employee. It’s important to note that these reimbursement rules apply to all employers, regardless of size, and for health care plans effective beginning on or...

Tags: Health Insurance Reimbursements

Category: Taxes

Some considerations with non cash donations

Written by Doug Rodrigues February 17, 2015

Although it may be tempting to fudge on that blank form you’re given when you make a non cash charitable donation, your $3 sweater just isn’t worth $50 — and the IRS knows it! If you’re claiming non cash charitable deductions on your taxes this year, here’s a look at how to do it by the book. If you’ve never...

Tags: non cash charitable donations

Category: Taxes

Elect S corporation status by March 16

Written by Doug Rodrigues February 17, 2015

If you own a small business, you have until March 16, 2015, to choose S corporation status for this year. In order to become an S corporation, you’ll need the unanimous approval of all shareholders. The principal advantage of an S corporation is that you avoid paying double taxes. In a traditional C corporation, profits are taxed at the corporate...

Tags: S corporations

Category: Taxes

Warning: Watch out for aggressive phone scams again this tax season

Written by Doug Rodrigues February 16, 2015

The Treasury Inspector General for Taxpayer Administration (TIGTA) is warning taxpayers about one particular category of tax scams that has proven to be very widespread, very aggressive, and very relentless. Callers claim to be IRS employees, and they tell their intended victims that they owe taxes that must be paid immediately using a prepaid debit card or wire transfer. The...

Tags: phone scams

Category: Taxes

Electronic refunds limited to three per account

Written by Doug Rodrigues February 11, 2015

The IRS announces that, as part of its efforts to curb fraud and identity theft, it will no longer directly deposit more than three electronic refunds to a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund. The IRS also warns that direct deposit must be made only...

Tags: electronic refunds

Category: Taxes

New ABLE accounts are now available

Written by Doug Rodrigues February 10, 2015

The Tax Increase Prevention Act of 2014 that was signed last December mainly affected the year 2014 as it extended for that year only some 50 tax breaks that had expired earlier. One provision, however, became effective in 2015. Starting this year, the law authorizes tax-favored ABLE accounts for disabled individuals. These “Achieving a Better Life Experience” accounts are exempt...

Tags: ABLE accounts

Category: Taxes

Check qualification for health insurance exemption

Written by Doug Rodrigues February 5, 2015

If you didn’t have health insurance in 2014 or the insurance you had did not meet minimum requirements, you may have to pay a penalty on your 2014 federal income tax return – unless you qualify for an exemption. Exemptions include unaffordable coverage when premiums would have exceeded 8% of your household income, a coverage gap of three months or...

Tags: health insurance exemption

Category: Taxes

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D.E. Rodrigues & Company Accounting Blog

February 2015