Posts Categorized: Tax Issues

IRS Extends ACA Reporting Deadline

in Affordable Care Act, Tax Issues

This afternoon the Internal Revenue Service issued IRS Notice 2016-70 extending the distribution due date for ACA reporting purposes. Specifically, the notice extends by 30 days the due date for distributing the 2016 Form 1095-B and the 2016 Form 1095-C, from January 31, 2017, to March 2, 2017.  Further, the Service has determined that no extension is needed for filing such forms with the Service.  Therefore, the due date for filing with the Service the 2016 Forms 1094-B, 1095-B, 1094-C, or 1095-C remains February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically. The notice also… Continue Reading

Required Reading – New Instructions for ACA Reporting

in Affordable Care Act, Health Benefits, Tax Issues

Unlike the forms for the 2015 calendar year, the 2016 Forms 1095-C must be provided to employees by January 31 and must be submitted to the IRS electronically by March 31 (for those with under 250 forms submitting on paper, the deadline is February 28).  Newly revised forms and instructions for this purpose have just been released.  Although the forms have not changed much, the instructions have changed significantly.  The penalties for failing to file a correct form with the IRS or an individual is $260 for each; certain caps and exceptions apply. Even those who mastered the 2015 instructions… Continue Reading

IRS Eliminates One of the Section 83(b) Filing Requirements

in Executive Compensation, Tax Issues

If an individual makes a Section 83(b) election to include in income the value of unvested property (such as restricted stock) that is transferred in connection with the performance of services, the individual must file the Section 83(b) election statement with the IRS no later than 30 days after the date the property is transferred.  However, under final regulations recently issued by the IRS, the individual no longer has to file a copy of the Section 83(b) election statement with his or her income tax return for the year of transfer.  These final regulations apply to property transferred on or… Continue Reading

IRS Issues Proposed Regulations under Sections 457(f) and 409A

in Executive Compensation, Section 409A, Tax Exempt Entities, Tax Issues

On June 22, 2016, the IRS issued long-awaited proposed regulations on Section 457(f) plans, as well as additional proposed regulations under Section 409A.  As expected, the Section 457(f) rules have many similarities to the existing Section 409A rules; however, there are some welcome differences including the possibility of a noncompete agreement creating a substantial risk of forfeiture for purposes of Section 457(f).  While the proposed rules under Section 409A include several welcome clarifications, changes to the proposed income inclusion regulations narrow the ability to make changes to unvested benefits.

Reminder: Cash Rewards for Participating in a Wellness Program are Taxable

in Health Benefits, Tax Issues, Wellness Programs

The IRS Office of Chief Counsel has released a memorandum (Number 201622031) confirming that the following rewards and incentives result in additional taxable wages to the employee: – Cash rewards payable to an employee for participating in a wellness program (such as a program providing health screening); – The value of certain fringe benefits, such as gym memberships, for participating in a wellness program; and – Reimbursements of premiums for participating in a wellness program when the premiums were originally paid pre-tax through a cafeteria plan (this is similar to the issue previously addressed in Revenue Ruling 2002-3). Although the… Continue Reading