USA: 10 important tax-related developments for 2017

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 ACA Reporting Although the ACA might be repealed or modified in 2017, it's still in effect for 2016.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.