In spite of the numerous benefits of hiring a tax accountant, many people still try to avoid it. They may think that they can do their books and taxes on their own, or they may decide that they can’t afford to spend any money on a Raleigh NC accountant.
Back in 2009, a little accounting interpretation called FIN 46 struck fear in the hearts of many a small business and the accountants that serve them. FIN 46 (FASB Interpretation No. 46(R)) required companies with variable interest entities (VIE) to consolidate their financial statements. Oftentimes related party lease arrangements were considered to be VIE’s and thus were required to be consolidated or not comply with Generally Accepted Accounting Standards.
According to the IRS Exempt Organizations final report on colleges and universities the IRS has identified “some significant issues.” Two of them being Unrelated Business Income Tax (UBIT) and documentation of executive compensation.
On the heels of the Administration’s delay of the Employer Mandate (Play or Pay) until 2015, watchdogs commented to the House of Representatives Oversight and Government Reform committee. Representatives from the Treasury Inspector General for Tax Administration and the GAO said that the October 1, 2013 deadline for beginning the healthcare exchanges would be difficult to complete.
Under the Act, individuals will be able to buy health insurance through the new exchanges beginning October. The exchanges were designed to assist people in complying with the Individual Mandate which requires individuals to have insurance or pay a fine on their 2014 tax return. Many states, including North Carolina, have refused to set up the healthcare exchanges, which puts more burden on the federal exchange.
Obama administration officials have assured the committee that they are on track.
More to come…
Our tax experts have a strong understanding of the tax laws. Contact Langdon & Company LLP today by calling 919-662-1001 or fill out the online contact form and a representative will be in contact shortly.
The Administration announced recently that it will provide an additional year before the ACA mandatory employer and insurer reporting requirements begin. Scheduled to become effective January 1, 2014, the new effective date is January 1, 2015. Formal transition guidance will be published in the coming weeks. The Administration intends to strongly encourage employers and insurers to voluntarily implement the information reporting in 2014.
Because of the delay in reporting requirements, the Administration has also delayed the “shared responsibility payments” until 2015. Under ACA’s “Employer Mandate,” employers with more than 50 full time employees would have to begin to offer affordable health insurance as defined by the Act or face substantial penalties or “shared responsibility payments.” The delay means these penalties will not apply to 2014.