Tax Update by Taylor Vance

Tax Update by Taylor Vance

Category : Blog

Taylor Vance

Taylor Vance-JS Tax Accountant

  • The Foreign Account Tax Compliance Act (FACTA) requires foreign financial institutions (FFIs) to determine if their accounts are held by U.S. owners. The FFIs then must report any account information to the IRS. The IRS is providing relief to FFIs by moving the requirement to certify preexisting accounts to 2018 instead of the original date of 2016. It is important to note that even though the certification of preexisting accounts has been moved to 2018, FFIs must still complete the due diligence procedures for preexisting accounts by the original due date of 2016.
  • Employers and health insurance providers will generally give health insurance information to covered individuals by providing them a Form 1095-B or 1095-C.   The deadline for health insurance providers and employers to provide these forms is not until March 31, 2016. It is important to note that the Treasury stated that taxpayers are not required to attach these forms to their tax returns, and do not need to wait to receive them before filing their tax return.
  • A taxpayer who believes their Social Security number has been stolen and used to file a fraudulent tax return should contact the IRS by filing Form 14039, Identity Theft Affidavit. The form should be sent to the Identity Theft Victim Assistance organization. The taxpayer should anticipate that it will take 120 to 180 days to resolve their case. Also, the taxpayer may be placed into the Identity Protection PIN program.
  • The Chief Judge of the United States Tax Court is proposing to amend the court’s Rules of Practice and Procedure. The proposal is to change how petitions and other papers are filed. It would allow for more petitions and other papers to be filed electronically.
  • Missouri Storm Victims may be eligible for IRS disaster relief.
  • Congressional Budget Office predicted that the revenues from individual income taxes will increase by five percent in 2016.
  • Obama has proposed pooled 401(k) plans. The proposal would allow multiple unrelated employers to create a pooled 401(k) plan. This is to allow small businesses to be able to offer their employees more cost-effective plans.