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When Congress took up the task of adopting a federal budget, nobody expected the effect it would have on partnership taxation.  In fact, though, in passing the Bipartisan Budget Act of 2015 (the Budget Act), which President Obama signed into law on November 2, 2015, two provisions were included affecting partnerships and their partners, as follows –

With the cost of providing employee health care benefits continuing to rise, a health savings account (HSA) might offer an appealing tax saving strategy to utilize. For eligible individuals, HSAs offer a tax-favorable way to set aside money (or have their employer do so) to pay medical expenses. To be eligible for an HSA, you must be covered by a high-deductible health plan.

Now that we have a year of the ACA under our belts, and employers are now beginning to deal with complying with the Employer Mandate, this is a good time to review the reporting requirements that are being borne by individuals and employers.  While individuals have had a year to get used to their compliance requirements, employers are now entering unfamiliar territory. 

Many business owners, non-profit entities or those who use independent contractors, are still unclear as to how to properly classify workers, especially in the eyes of the IRS. While it is understandable to be naïve to the nuances of business law, it will not prevent a business owner from incurring penalties for worker misclassification. Penalties, along with interest, can be steep as they include unpaid payroll and unemployment taxes, overtime, minimum wages, employee expenses and other employee payments. 

The IRS recently announced an extension of due dates for information reporting requirements both for filing with the IRS and for providing forms to individuals under the Affordable Care Act (ACA) for health insurance carriers, self-insured employers and payroll service providers.  For these filers, the due date extension provides additional time to compile the required  information, as well as to furnish and file the ACA reporting forms for the 2015 calendar year.

The deadline for filing 2015 Form 1095-C (offer of health coverage) and Form 1095-B (report of health coverage) has been extended from February 1, 2016 to March 31, 2016.  In addition, the deadline for submitting electronic 2015 Forms 1094-C  and 1094-B (employer transmittal forms) has been extended from March 31, 2016 to June 30, 2016. If not filed electronically, the deadline has been extended from February 29, 2016 to May 31, 2016.

You or your business may qualify for First Time Penalty Abatement (FTA).

As you probably know, the Internal Revenue Service (IRS) can assess penalties to both individuals and businesses for not complying with the tax rules.  For example,

The giving cycle. Funding cuts. Grant applications. Today, many professionals responsible for the fiscal health of a not-for-profit are consumed with a variety of concerns that impact the bottom line. Adding to that, the recent Financial Accounting Standards Board (FASB) proposed changes are certainly concerns that cannot be overlooked.

According to the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the U.S. This number includes public charities, private foundations, and other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues. The concern?  The FASB changes will affect nearly all not-for-profit entities who issue financial statements.