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News & Knowledge

USA: 10 important tax-related developments for 2017

20th February 2017
Rubino & Company Chartered

Several significant tax developments happened last year that may affect federal income tax returns that individual and business taxpayers file in 2017. MSI’s Maryland accounting member Rubino & Company outlines 10 key changes that you should be aware of during this tax season.

The 10 key changes that you should be aware of during this tax season are the following:

  1. Stand-Alone HRAs
    On 13 December, 2016 — just over a month before leaving office — President Obama signed the 21st Century Cures Act into law. In addition to funding cutting-edge medical research, this new legislation allows an employer with fewer than 50 employees and no other group health insurance plan to establish Health Reimbursement Arrangements (HRAs) for its employees.These standalone HRAs aren’t subject to certain penalties and restrictions imposed by the IRS under the Affordable Care Act (ACA). Plan ahead: The 21st Century Cures Act applies to plan years beginning after 2016.
  2. ACA Reporting
    Although the ACA might be repealed or modified in 2017, it’s still in effect for 2016. Under the ACA, employers must file information returns with the IRS and provide information to employees and other responsible individuals.Recently, the IRS offered some consolation: It extended to 2 March, 2017, the due date for furnishing to individuals 2016 Form 1095-B, “Health Coverage,” and 2016 Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage.” This gives employers an extra 30 days to get their paperwork in order.
  3. Premium Tax Credits
    Taxpayers required to acquire health insurance under the ACA may qualify for premium tax credits to offset part of the cost. Although existing regulations include several favourable safe-harbour rules for determining eligibility, those rules don’t apply where an individual, with reckless disregard of the facts, provides incorrect information to a health insurance exchange.New final regulations clarify that this provision for “reckless disregard of the facts” applies only to the conduct of the individual — not to information provided by any third parties.

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About Rubino & Company, Chartered - Washington, District of Columbia

Rubino & Company offers comprehensive accounting, tax, and financial services to organizations, individuals, and companies across the Washington, DC metropolitan area.

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