Affordable Care Act- Forms Nov 6, 2014

Anna Falkenstein and Eugenia Tabon Stakeholder Liaison

Anna Falkenstein

Starting with 2014 tax year: • Form 1095-A, Health Insurance Marketplace

Statement

Starting with 2015 tax year: • Form 1095-B, Health Coverage • Form 1095-C, Employer-Provided Health

Insurance Offer and Coverage

What Information Documents Will an Individual Receive?

Form 1095-A

What Information Document will an Individual Receive?

Form 1095-A will be issued by the Health Insurance Marketplace • Sent by January 31 • Shows:

‒Documentation of coverage by month ‒ Premiums, and ‒ Advance payments of PTC

How Will ISRP be Reported?

• Form 8965 is used to report or claim a coverage exemption

• Full year coverage is reported on the tax return

• Payment, if due, is reported and paid with the tax return

Draft 1040 Form

Draft 1040 form

What’s on PTC Form 8962

• Annual and Monthly Contribution • PTC Claim and Reconciliation • Repayment of Excess of Advance Payment • Shared Policy Allocations • Alternative Calculation for Marriage

ISRP Glossary of Terms

Exemption Certificate Number: when the Marketplace grants an exemption they provide a numbered certificate to the individual(s); this ECN will be used to report the exemption when filing a tax return.

Employer Sponsored Insurance: an insurance plan offered through an employer.

Government Sponsored Insurance: health care provided by government entities such as Medicare, Medicaid, CHIP, TRICARE, and veterans’ health care under chapter 17 or 18 of Title 38 U.S.C.

Household Income for ISRP: the Modified Adjusted Gross Income of the taxpayer and the taxpayer’s spouse, plus the MAGI of all the dependents in the tax household who are required to file a tax return.

Individual Shared Responsibility Payment: a payment required by ACA when individuals do not fulfill their health care coverage responsibilities.

Modified Adjusted Gross Income for ISRP: the amount of your Adjusted Gross Income from the federal income tax return increased by any Foreign Earned Income Exclusion and tax-exempt interest you received or accrued during the taxable year.

PTC Glossary of Terms

• Affordability: Annual premium for the lowest-cost option of employer-sponsored self-only coverage that provides minimum value and does not exceed 9.5 percent of household income.

• Minimum Value: Employer-sponsored plans that cover at least 60 percent of the total allowed costs of benefits.

• Household Income for PTC: The Modified Adjusted Gross Income of the taxpayer and the taxpayer’s spouse, plus the MAGI of all the dependents in the tax household who are required to file a tax return.

• MAGI for PTC: Adjusted gross income from the federal income tax return, plus any excluded foreign income, non-taxable Social Security benefits (including tier 1 railroad retirement benefits), and tax-exempt interest received or accrued during the taxable year. MAGI does not include Supplemental Security Income.

IRS Resources for Payroll Professionals

August 6, 2014

Eugenia Tabon

On-Line Resources Search: ACA

• ACA Information Center for Tax Professionals • Publication 5157, VITA/TCE Affordable Care

Act: 2014 Returns • Instructions for form 8965 • Questions and Answers for the Additional

Medicare Tax • Revenue Procedure: 2014-46

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Search “Payroll Professional” IRS.gov

• Legislative changes • News releases and announcements • Employment tax procedures • Reminders and tips

E-News for Payroll Professionals

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Payroll Professionals Tax Center

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Local Meetings and Seminars

IRS Video Portal

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“for Tax Pros” Tab

Information and links to: • PTIN registration • E-Services • Tax Forums • Ways to stay informed • “Hot Topics”

“for Tax Pros” Page

• Receive e-file messages affecting e-file transmitters, software developers and authorized IRS e-file providers

• Four categories: 1. Alerts 2. Technical 3. General Notifications 4. General IRS e-file Service Center

Messages

Stay Informed with QuickAlerts

• IRS2Go app • YouTube • Twitter: @IRStaxpros • Tumblr • Facebook • Podcasts

IRS Social Media

• All forms and pubs: IRS.gov/formspubs • Draft forms: IRS.gov/draftforms • IRS.gov/aca • IRS.gov/ptin • IRS.gov/efile • IRS.gov/eservices

IRS.gov

• IRS.gov/form1040 • IRS.gov/form6251 • IRS.gov/pub17 • IRS.gov/w2 • IRS.gov/ScheduleA • IRS.gov/ScheduleD

Web Pages for Forms and Pubs

Business Expired Provisions

•Research and experimentation tax credit •New Markets Tax Credit •Employer wage credit for activated military reservists •Work Opportunity Tax Credit •Bonus depreciation •Acceleration of AMT credits in lieu of bonus depreciation

• Identity Protection Personal Identification Numbers (IP PINs)

• E-Authentication • New program guidance addressing business

identity theft • Online fraud detection and prevention

IRS initiatives fight identity theft and assist victims

Business Master File identity theft

• Business Master File, or BMF, identity theft is defined as creating, using or attempting to use a business’s identifying information, without authority, to obtain tax benefits.

• The following examples represent situations that may be due to identity theft related to the fraudulent use of business information.

Business-related identity theft

Business identity theft: • Creating, using or attempting to use business

identifying information without authority to obtain tax benefits

• New IRS program guidance focuses on research, identification, tracking and victim assistance

Addressing business identity theft

If you suspect your organization has been compromised by business identity theft, take the following steps: • File a report with local law enforcement. • Contact the major business credit agencies, including

Equifax, Experian, TransUnion and Dunn and Bradstreet to report the fraudulent activity and obtain a credit report to check for additional fraudulent activity.

• Contact all credit card companies, financial institutions and creditors to alert them to the possibility of fraudulent activity.

• Respond to the IRS notice you received and provide a detailed explanation of how you believe your organization has been affected by identity theft.

Dealing with tax-related identity theft

Physical safeguards: • Lock rooms and cabinets. • Store records in secured area. • Protect against destruction and damage. • Inventory hardware. • Dispose of information and hardware securely.

Protecting your business and clients

System safeguards: • Use strong passwords: Minimum of eight

alphanumeric characters. • Change passwords periodically. • Use timed, password-activated screen savers. • Don’t post or share passwords. • Encrypt sensitive data when:

– Transmitting over networks. – Storing on servers or media.

• Encrypt entire computers, media.

Protecting your business and clients

• Identity theft information –http://www.irs.gov/uac/Identity-Protection

• Individual identity theft • Business identity theft • Data breach information • Additional resources • Taxpayer Guide to Identity Theft

Additional information

If you have a security breach: • Notify law enforcement. • Notify the Federal Trade Commission

(www.FTC.gov for contact information). • Notify customers and business partners. • Take corrective actions. • Prevent other breaches.

Protecting your business and clients

• IRS collaborates and exchanges info with other agencies and financial institutions to prevent identity theft

• We need your help to safeguard info and: –Educate the public to be more vigilant –Help businesses understand their role in

protecting information

You play a critical role

• Business identity theft – http://www.irs.gov/uac/Has-yourbusiness-

become-the-victim-of-a-datasecurity-breach%3F

• Safeguarding info in your office – http://business.ftc.gov/documents/bus59-

information-compromise-andrisk-id-theft-guidance-your-business

Other resources

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• Complete online form • By email: Complaints@tigta.treas.gov • By phone: 1-800-366-4484 • By fax: (202)927-7018 • By mail: TIGTA Hotline PO Box 589 Ben Franklin Station Washington, DC 20044-0589

Reporting Complaints to TIGTA

Thank you!

Eugenia.Tabon@irs.gov (336) 574-6404