Lee B

I believe this was passed as part of the passage of the Highway Bill or the Budget Reconciliation Bill several months ago.

Don't know about this year, since I haven't installed 2015 yet, probably won't until the end of the month. Too busy working on payroll stuff. However last year the manual exe command to start the servers was located at \ATX2014AdminConsole\Sfs.ServerHost.AdminConsole.exe . If 2015 is similar, just find this command and click on it once and the servers should start. The last two years I have pinned this command to my Start Menu.

My last EA card took 3 or 4 months to get to me. With the reduced staffing at the IRS, it's probably not a very high priority.

Perhaps they could outsource all phone contact to a call center in India

Copied from the Notes to the ATX 2015 System Requirements: . The new Edge browser has been found to present limitations with respect to certain required functionality. Microsoft offers the option to use Internet Explorer 11 rather than the Edge browser and the ATX team recommends that customers choose that option until Edge is more fully developed. ATX further states that it should also work with Chrome & Firefox.

Have no idea as to the variety of the tax returns you you plan to do, but first I would look at Tax Act.

Check out Tax Act. It should do the job for much less.

Now we will have to decide what "other information" constitutes due diligence ?

The IRS is informing individual taxpayers that due to these extensions, they may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2015 individual income tax return. While the information on these forms may assist in preparing a return, they are not required to file. Like last year, taxpayers can prepare and file their returns using other information about their health insurance. Individuals do not have to wait for their Form 1095-B or 1095-C in order to file. Now that the IRS has extended the date that providers and employers have to to give 1095s to their employees until March 31st, we will have to decide what "other information " satisfies due diligence .

IRS Extends Due Dates for New 2015 Information Reporting Requirements On Dec. 28, the IRS extended the due dates for new health care information reporting forms in 2016. Insurers, self-insuring employers, other coverage providers, and applicable large employers now have additional time to provide health coverage information for 2015 to individual taxpayers and the IRS. Providers and certain employers must now furnish individuals with either Form 1095-B or 1095-C by March 31, 2016. The due dates for issuers filing these forms and the associated Form 1094 with the IRS are May 31, 2016 for paper filers and June 30, 2016 for electronic filers. The IRS is prepared to accept information reporting Forms 1094-B, 1095-B, 1094-C, and 1095-C beginning in January 2016. However, following consultation with stakeholders, we have determined employers, insurers, and other providers of minimum essential coverage need additional time to adapt and implement systems and procedures to gather, analyze, and report this information. Information providers that are prepared to furnish the forms to individuals and file them with the IRS prior to the extended due date are encouraged to do so rather than waiting for the new due dates. The IRS is informing individual taxpayers that due to these extensions, they may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2015 individual income tax return. While the information on these forms may assist in preparing a return, they are not required to file. Like last year, taxpayers can prepare and file their returns using other information about their health insurance. Individuals do not have to wait for their Form 1095-B or 1095-C in order to file. Employer Topics

My largest client has 42 or 43 full time employees, but the FTE rules push them up to 54 or 55 FTE employees. While they are a solid profitable business, the cost of providing health insurance to their employees exceeds their Profit, so they have decided to not to provide insurance and let their employees go to the marketplace. The penalties they will have to pay are far less than the projected cost of providing health insurance. 1. What I am unclear about is, are they still required to file Form 1095 even though they are providing no health insurance ?

There is an ongoing discussion on the ATX Board about whether a client must show you a 1095 or can a preparer take the client's verbal assertation that the client has qualifying coverage ? I thought that due diligence required us to see the 1095 ???

Since the same Rules and Regulations apply, nothing is changed.

5. Upcoming Return Preparer Office Educational Letters The Return Preparer Office will be mailing the following letters on Tuesday, Dec. 29: Letter 5271 to 5,000 return preparers. This letter reminds them of their responsibilities when preparing returns that include the Child Tax Credit and the Additional Child Tax Credit. Letter 5272 to 2,500 return preparers. This letter reminds them of their responsibilities when preparing returns that include the Child Tax Credit and the Additional Child Tax Credit when children with ITINs are involved. Letter 5573 to 2,500 return preparers. This letter reminds credentialed return preparers to inquire about 1099-K income when they prepare Schedule C returns. (Letter 5574 on the same topic was sent to 5,000 non-credentialed return preparers in August. It was sent earlier because it encouraged the recipients to take CE on the topic and to consider participating in the Annual Filing Season Program

According to The Tax Book: 1. If the taxpayer prepaid interest in 2014 that accrues in full by Jan 15th, 2015, this prepaid interest may be included in box 1 Form 1098. 2. The prepaid amount for January 2015 is not deductible in 2014.

Also due to Emancipation Day falling on April 15th, Monday April 18th will be the unextended due date ! Wow, 3 extra days to play with !

COPIED FROM THE ATX BLOG: Tuesday, December 22, 2015 Year-End Renewal Savings Save Up To $150 When You Renew Today! If you haven't renewed your ATX tax software yet, you don't want to miss this final, year-end opportunity. Just renew online and enter promo code "UNL" to take advantage of this limited-time opportunity to save. Hurry, this offer ends Dec. 31, 2015! Very interesting ! I' have never seen ATX do this before. Wonder if it says something about their renewal rate ? Also, if ATX is going to start offering a discount at the end of the year, why would you renew early ???

My understanding is that it refers to both the employees and the S Corp shareholder

MORE DETAIL ON THE NON-PERMANENT EXTENDERS FROM FORBES : Provisions Extended Through December 31, 2019 Not all of the 52 provisions were made permanent, however. The following were extended only through 2019: The new markets tax credit, Bonus depreciation: the 50% immediate expensing of asset acquisitions that we’ve known in one form or another since 2001 is on its last legs. It will be permitted at 50% for 2015, 2016 and 2017 before reducing to 40% in 2018 and 30% in 2019, when it will then disappear altogether. Provisions Extended Through December 31, 2016 The majority of the remaining 52 provisions were extended for two years, through December 31, 2016. Included among the two-year extenders are the following: Exclusion of COD income on principal residence: Since 2007, Section 108(a)(1)(E) has allowed a taxpayer who renegotiates the mortgage on his principal residence — or is forced to sell the home in a foreclosure or short sale that does not fully repay the lender, with the excess deficiency forgiven — to exclude up to $2 million of what would ordinarily be “cancellation of indebtedness” income under Section 61(a)(12). This deal extends the exclusion for an additional two years, at which point I would hope the real estate market would be adequately recovered so as to necessitate no further extension. Tuition deduction: a maximum above-the-line deduction of $4,000 will continue to be permitted for tuition costs for higher education. Film and television productions: taxpayers will continue to be permitted to deduct the first $15 million of costs for qualified film, television and live theater productions. Energy incentives: the following energy incentives were extended for two years: A $500 credit for the purchase of certain non-business energy-efficient property, Up to a $2,000 credit available to the manufacturer of energy-efficient homes, Section 179D expensing of certain heating, cooling, and lighting improvements to commercial property. Delay of Obamacare Provisions Obamacare came under fire as part of the negotiations, as the agreement would pause the 2.3% excise tax on medical devices in 2016 and 2017, while the start of the so-called Cadillac tax on high-cost employer-sponsored health insurance would be delayed from 2018 to 2020. Other provisions: Because the earned income credit is a lightning rod for fraud, taxpayers will not be permitted to file amended returns claiming the credit for a year when they did not have a valid social security number. The same holds true for the child tax credit; a taxpayer may not file an amended return claiming the credit for any year in which they did not have a valid ITIN (taxpayer identification number). In addition, taxpayers convicted of fraud in claiming the earned income credit will be barred from claiming the credit for ten years, while those found to have recklessly disregarded the rules will be prohibited from claiming the credit for two years. A 20% penalty will also be applied to the refundable portion of improperly claimed credits, reversing an earlier court decision. The new deal also makes material changes to the treatment of tax-free spinoffs under Section 355 that involve a real estate investment trust, generally requiring that the spinoff will be tax free only if immediately after the transaction, both the distributing and controlled corporations are REITs. Foreign taxpayers selling a interest in US real property will be subject to a higher 15% withholding tax as opposed to the previous tax of 10%. Summary To restate, a deal is not done, and many Democrats are unhappy with what they perceive to be cuts too heavily weighted towards businesses, without enough done for families. Also a concern is the price tag; as you’ll notice, there are little offsets to all of the permanent tax cuts, and as a result, the plan is rumored to cost in the neighborhood of $700 billion over ten years. In its current form, the deal is a win for Republicans, as it provides long-sought after permanency in the R&D credit and enhanced Section 179 deductions. And while the Republicans were reluctant to give concessions on the earned income credit, by reducing the tax revenue baseline by $700 billion over the next ten years, it should make future Republican proposals for tax cuts easier to swallow, because the drop in projected revenue won’t look quite as daunting as it otherwise would have. But at a time like this, winners and losers don’t matter. As taxpayers, we just need to know which tax provisions we have available to us for planning and reporting purposes. Here’s to hoping this gets done by the end of the week

COPIED FROM THE BASE NEWSLETTER: On December 16th, the Treasury Department and IRS released Notice 2015-87 regarding the treatment of employer health care arrangements and the market reforms of the Affordable Care Act. Below are a few highlights from the most recent Notice 2015-87: The notice reaffirms that an HRA or employer payment plan with one participant can still reimburse individual market premiums without violating the market reforms. The notice solidifies that an HRA or employer payment plan with two or more participants cannot pay or reimburse individual market premiums. These types of arrangements are subject to the $100 per-employee per-day penalty. The notice amended previous guidance regarding Integrated HRAs. Prior to this notice, the benefit amount of the Integrated HRA could be extended to a spouse and dependent who were not insured by the employer's group insured plan, but insured by another employer's group insurance plan. From this point moving forward the Integrated HRA benefit amount can only be extended to individuals who are insured by the employer's group insurance plan. The notice reiterates that an employer who utilizes an Excepted Benefits HRA or 125 Plan for two or more participants does not violate the market reforms. The notice further confirms that an employer cannot utilize a Section 125 plan to pretax individual market premiums, even if it is funded solely by the employee. These types of arrangements are subject to the $100 per-employee per-day penalty. Many of the questions addressed elaborate on IRS Notice 2013-54, FAQs about the Affordable Care Act Implementation (Part XXII), Notice 2015-17, and final regulations implementing the market reform provisions of the ACA

Assets in a Partnership can have outside basis and inside basis which are not the same, so the basis of asset in the hands of a partner can easily be different from the Partnership's Book Basis.

Some years ago, one of my new clients was a commercial rental property, equally owned by 3 brothers. The previous accountant, a CPA, had been reporting the activity on each individual's Schedule E as a Joint Venture. The first year I reported that same way as a Joint Venture. The IRS rejected this approach and forced us to file as a Partnership Form 1065.

It's possible to have more than one Form 1096 per client, in which case ATX will charge you $1.50 per Form 1096. I have several clients which have two Form 1096's Also if you efile any Form(s) 94x you will be charged $1.50 for each one

IRS Privacy Policy Topics Report phishing Identity theft Protecting your SSN Safeguards Program Privacy Impact Assessment IRS Privacy Policy Home Like - Click this link to Add this page to your bookmarks Share - Click this link to Share this page through email or social media Print - Click this link to Print this page Report Phishing and Online Scams Español | 中文 | 한국어 | TiếngViệt | Pусский The IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts. What is phishing? Phishing is a scam typically carried out through unsolicited email and/or websites that pose as legitimate sites and lure unsuspecting victims to provide personal and financial information. Report all unsolicited email claiming to be from the IRS or an IRS-related function [email protected]. Recent scams have used the Electronic Federal Tax Payment System (EFTPS) to attract potential victims. Also, if you've experienced any monetary losses due to an IRS-related incident, please report it to the Treasury Inspector General Administration (TIGTA) and file a complaint with the Federal Trade Commission (FTC) through their Complaint Assistant to make the information available to investigators. NOTE: Please refer to Contact the IRS if you have a tax question not related to phishing or identity theft. ALERT: IRS Repeats Warning about Phone Scam What to do if you receive a suspicious IRS-related communication If Then You receive an email claiming to be from the IRS that contains a request for personal information, taxes associated with a large investment, inheritance or lottery. Don't reply. Don't open any attachments. They can contain malicious code that may infect your computer or mobile phone. Don't click on any links. Visit our identity protection page if you clicked on links in a suspicious email or website and entered confidential information. Forward the email as-is to us [email protected]. Don't forward scanned images because this removes valuable information. Delete the original email. You receive a phone call from someone claiming to be from the IRS but you suspect they are not an IRS employee ... Record the employee's name, badge number, call back number and caller ID if available. Call 1-800-366-4484 to determine if the caller is an IRS employee with a legitimate need to contact you. If the person calling you is an IRS employee, call them back. If not, report the incident to TIGTA and to us at [email protected] (Subject: 'IRS Phone Scam') You receive a letter, notice or form via paper mail or fax from an individual claiming to be the IRS but you suspect they are not an IRS employee … Go to the IRS home page and search on the letter, notice, or form number. Fraudsters often modify legitimate IRS letters. You can also find information at Understanding Your Notice or Letter or by searching Forms and Pubs. If it is legitimate, you'll find instructions on how to respond or complete the form. If you don't find information on our website or the instructions are different from what you were told to do in the letter, notice or form, call 1-800-829-1040 to determine if it’s legitimate. If it's not legitimate, report the incident to TIGTAand to us at [email protected]. You receive an unsolicited fax, such as Form W8-BEN claiming to be from the IRS, requesting personal information … Please send us the email or scanned fax via email to [email protected] (Subject: 'FAX'). Visit the FATCA home page and Form W8-BEN for more information. You receive an unsolicited telephone call or email, involving a stock or share purchase, that involves suspicious IRS or Department of Treasury documents such as "advance fees" or "penalties" ... ... and you are a U.S. citizen located in the United States or its territories or a U.S. citizen living abroad. Complete the appropriate complaint form with the U.S. Securities and Exchange Commission. Forward email to [email protected] (Subject: 'Stock'). If you are a victim of monetary or identity theft, you may submit a complaint through theFTC Complaint Assistant. ... and you are not a U.S. citizen and reside outside the United States. Complete the appropriate complaint form with the U.S. Securities and Exchange Commission. Contact your securities regulator and file a complaint. Forward email to [email protected] (Subject: 'Stock'). If you are a victim of monetary or identity theft, you may report your complaint toeconsumer.gov. You discover a website on the Internet that claims to be the IRS but you suspect it is bogus … ... send the URL of the suspicious site [email protected] (Subject: 'Suspicious Website'). You receive a text message or Short Message Service (SMS) message claiming to be from the IRS … Don't reply. Don't open any attachments. They can contain malicious code that may infect your computer or mobile phone. Don't click on any links. If you clicked on links in a suspicious SMS and entered confidential information, visit our identity protection page. Forward the text as-is, to us at 202-552-1226.Note: Standard text messaging rates apply. If possible, in a separate text, forward the originating number to us at 202-552-1226 Delete the original text. How to identify phishing email scams claiming to be from the IRS and bogus IRS websites Sample of phishing emails First sample of an actual IRS-related phishing email - PDF Second sample of an actual IRS-related phishing email - PDF Is it a phishing website posing as the IRS? - PDF Sample of FAX scam Sample of fax scam requesting EIN - PDF Are you a victim of Identity Theft? Contact the Federal Trade Commission Visit the IRS Identity Theft resource page What to do if you receive a suspicious email message that doesn't claim to be from the IRS If Then You receive a suspicious phishing email not claiming to be from the IRS ... Forward the email as-is [email protected]. You receive an email you suspect contains malicious code or a malicious attachment and you HAVE clicked on the link or downloaded the attachment … Visit OnGuardOnline.gov to learn what to do if you suspect you have malware on your computer. You receive an email you suspect contains malicious code or a malicious attachment and you HAVE NOT clicked on the link or downloaded the attachment … Forward the email to your Internet Service Provider’s abuse department and/or to [email protected]. Additional related resources The IRS uses new and social media tools to share the latest information on tax changes, initiatives, products and services. The IRS also issues customer satisfaction surveys to capture taxpayer and tax practitioner opinions and suggestions for improving our products and services. Are you having trouble downloading a PDF?

The last two OSCPA Tax Updates presenters have said that change in the relevant rules and regulations have left this issue in a grey area of limbo. They advised us that the prudent and cautious response would be to file the 1099s.