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Taxpayers with Advance Payments of the Premium Tax Credit Who Have not Filed their 2014 Tax Return
Property Tax and Rent Rebates Issued
Self-Insured Employers Must File Health Coverage Information Returns
Keep Track of Miscellaneous Deductions
Act 89 Penn Dot Fee Increases Scheduled for July 1st
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Taxpayers with Advance Payments of the Premium Tax Credit Who Have not Filed their 2014 Tax Return

Taxpayers who received advance payments of the premium tax credit in 2014 and have not yet filed their 2014 tax return may receive Letter 5591. According to the Understanding Your Letter 5591 FAQ, taxpayers who do not file a tax return, will not be eligible for advance payments of the premium tax credit or cost-sharing reductions to help pay for their Marketplace health insurance coverage in 2016. This means the taxpayer will be responsible for the full cost of the monthly premiums and all covered services. In addition, the IRS may instruct the taxpayer to pay back some or all of the advance payments of the premium tax credit.

Property Tax and Rent Rebates Issued

The Pennsylvania Department of Revenue recently began issuing rebates to applicants for the Property Tax Rent Rebate program for taxes or rent paid in 2014.
The deadline to apply for rebates on property taxes or rent paid in 2014 was recently extended from June 30 to December 31 to allow more eligible individuals to apply for the program.

Self-Insured Employers Must File Health Coverage Information Returns

Regardless of size, all employers that provide self-insured health coverage to their employees are treated as coverage providers. These employers must file an annual return reporting certain information for each employee they cover.
As coverage providers, these employers must:

File a Form 1095-B, Health Coverage, with the IRS, accompanied by a Form 1094-B transmittal. Filers of more than 250 Forms 1095-B must e-file. The IRS allows and encourages entities with fewer than 250 forms to e-file.
Furnish a copy of the 1095-B to the responsible individual – generally the primary insured, employee, parent or uniformed services sponsor. You may electronically furnish the Form 1095-B. If a provider is an applicable large employer also providing self-insured coverage, it reports covered individuals on Form 1095-C instead of Form 1095-B. Form 1095-C combines reporting for two provisions of the Affordable Care Act for these employers. The information reporting requirements are first effective for coverage provided in 2015. Thus, health coverage providers will file information returns with the IRS in 2016, and will furnish statements to individuals in 2016, to report coverage information in calendar year 2015. The information that a provider must report to the IRS includes the following: The name, address, and employer identification number of the provider.
The responsible individual’s name, address, and taxpayer identification number, or date of birth if a TIN is not available. If the responsible individual is not enrolled in the coverage, providers may, but are not required to, report the TIN of the responsible individual.
The name and TIN, or date of birth if a TIN is not available, of each individual covered under the policy or program and the months for which the individual was enrolled in coverage and entitled to receive benefits.

Keep Track of Miscellaneous Deductions

Miscellaneous deductions can cut taxes. These may include certain expenses you paid for in your work if you are an employee. You must itemize deductions when you file to claim these costs. So if you usually claim the standard deduction, think about itemizing instead. You might pay less tax if you itemize. Here are some IRS tax tips you should know that may help you reduce your taxes:
Deductions Subject to the Limit. You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as:

Unreimbursed employee expenses.
Job search costs for a new job in the same line of work.
Some work clothes and uniforms.
Tools for your job.
Union dues.
Work-related travel and transportation.
The cost you paid to prepare your tax return. These fees include the cost you paid for tax preparation software. They also include any fee you paid for e-filing of your return.

Deductions Not Subject to the Limit. Some deductions are not subject to the two percent limit. They include: Certain casualty and theft losses. In most cases, this rule applies to damaged or stolen property you held for investment. This may include property such as stocks, bonds and works of art.
Gambling losses up to the total of your gambling winnings.
Losses from Ponzi-type investment schemes.

Act 89 Penn Dot Fee Increases Scheduled for July 1st

Certificate of title - $51
Recording a security interest on a certificate of
title - $24
PennDOT record of driver, registration, title or
security interest - $9
Certified copy of a PennDOT record - $23
(plus $9 for the record)
Annual certificate of inspection - $6
Semiannual certificate of inspection - $4
Transfer title and existing registration plate-$60

Ten Things to Know about Identity Theft and Your Taxes


Learning you are a victim of identity theft can be a stressful event. Identity theft is also a challenge to businesses, organizations and government agencies, including the IRS. Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund.
Many times, you may not be aware that someone has stolen your identity. The IRS may be the first to let you know you’re a victim of ID theft after you try to file your taxes.
The IRS combats tax-related identity theft with a strategy of prevention, detection and victim assistance. The IRS is making progress against this crime and it remains one of the agency’s highest priorities.
Here are ten things to know about ID Theft:
1. Protect your Records. Do not carry your Social Security card or other documents with your SSN on them. Only provide your SSN if it’s necessary and you know the person requesting it. Protect your personal information at home and protect your computers with anti-spam and anti-virus software. Routinely change passwords for Internet accounts.
2. Don’t Fall for Scams. The IRS will not call you to demand immediate payment, nor will it call about taxes owed without first mailing you a bill. Beware of threatening phone calls from someone claiming to be from the IRS. If you have no reason to believe you owe taxes, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.
3. Report ID Theft to Law Enforcement. If your SSN was compromised and you think you may be the victim of tax-related ID theft, file a police report. You can also file a report with the Federal Trade Commission using the FTC Complaint Assistant. It’s also important to contact one of the three credit bureaus so they can place a freeze on your account.
4. Complete an IRS Form 14039 Identity Theft Affidavit. Once you’ve filed a police report, file an IRS Form 14039 Identity Theft Affidavit. Print the form and mail or fax it according to the instructions. Continue to pay your taxes and file your tax return, even if you must do so by paper.
5. Understand IRS Notices. Once the IRS verifies a taxpayer’s identity, the agency will mail a particular letter to the taxpayer. The notice says that the IRS is monitoring the taxpayer’s account. Some notices may contain a unique Identity Protection Personal Identification Number (IP PIN) for tax filing purposes.
6. IP PINs. If a taxpayer reports that they are a victim of ID theft or the IRS identifies a taxpayer as being a victim, they will be issued an IP PIN. The IP PIN is a unique six-digit number that a victim of ID theft uses to file a tax return. In 2014, the IRS launched an IP PIN Pilot program. The program offers residents of Florida, Georgia and Washington, D.C., the opportunity to apply for an IP PIN, due to high levels of tax-related identity theft there.
7. Data Breaches. If you learn about a data breach that may have compromised your personal information, keep in mind not every data breach results in identity theft. Further, not every identity theft case involves taxes. Make sure you know what kind of information has been stolen so you can take the appropriate steps before contacting the IRS.
8. Report Suspicious Activity. If you suspect or know of an individual or business that is committing tax fraud, you can visit Internal Revenue Service WEBSITE and follow the chart on How to Report Suspected Tax Fraud Activity.
9. Combating ID Theft. Over the past few years, nearly 2,000 people were convicted in connection with refund fraud related to identity theft. The average prison sentence for identity theft-related tax refund fraud grew to 43 months in 2014 from 38 months in 2013, with the longest sentence being 27 years. During 2014, the IRS stopped more than $15 billion of fraudulent refunds, including those related to identity theft. Additionally, as the IRS improves its processing filters, the agency has also been able to halt more suspicious returns before they are processed. So far this year, new fraud filters stopped about 3 million suspicious returns for review, an increase of more than 700,000 from the year before.
10. Service Options. Information about tax-related identity theft is available online. We have a special section on Internal Revenue Service Website devoted to identity theft and a phone number available for victims to obtain assistance.

Get to Know the Small Business Health Care Tax Credit

If you are a small employer, you might be eligible for the Small Business Health Care Tax Credit, which can make a difference for your business. To be eligible for the credit, you must:

-have purchased coverage through the Small Business Health Options Program - also known as the SHOP marketplace
-have fewer than 25 full-time equivalent employees...
-pay an average wage of less than $50,000 a year
-pay at least half of employee health insurance premiums
For tax years beginning in 2014:

-The maximum credit increases to 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers.
-To be eligible for the credit, you must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program Marketplace or qualify for an exception to this requirement.

-The credit is available to eligible employers for two consecutive taxable years. Even if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments is more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments. There is good news for small tax-exempt employers, too. The credit is refundable, so even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability. Refund payments issued to small tax-exempt employers claiming the refundable portion of credit are subject to sequestration. Finally, if you can benefit from the credit even if you forgot to claim it on your 2014 tax return; there’s still time to file an amended return. Generally, a claim for refund must be filed within three years from the time the return was filed or two years from the time the tax was paid, whichever of such periods expires later. For tax years 2010 through 2013, the maximum credit is 35 percent of premiums paid for small business employers and 25 percent of premiums paid for small tax-exempt employers such as charities. You must use Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit. For detailed information on filling out this form, see the Instructions for Form 8941. If you are a small business, include the amount as part of the general business credit on your income tax return. If you are a tax-exempt organization, include the amount on line 44f of the Form 990-T, Exempt Organization Business Income Tax Return. You must file the Form 990-T in order to claim the credit, even if you don't ordinarily do so.

Pennsylvania Property Tax/ Rent Rebate Program extended to Dec 31,2015

Affordable Care Act Information Reporting for Businesses with 50 or more Employees

Businesses that have 50 or more full-time equivalent employees will be required to file information returns about health care coverage with the IRS for all of their full-time employees regardless of whether they provided health insurance to them during 2015.
Under the Affordable Care Act, these businesses are considered Applicable Large Employers (ALEs) and they must file a Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) for each full-time employee and Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) to the IRS no later than February 28, 2016 for calendar year 2015. They must also send all employees a copy of Form 1095-C by January 31, 2016.
Businesses that file 250 or more Form 1095-Cs are required to file them electronically with the IRS.

Stop Reimbursing for Health Insurance by June 30

It's common practice for small employers to reimburse or pay health insurance premiums for individual policies. If they continue to do so, they may be subject to an excise tax of $100 per day, per employee. Notice 2015-17 provides transitional relief from the $100 per day per employee excise tax for small employers. The IRS will not assess any penalties for reimbursement arrangements for 2014 through June 30, 2015. After June 30, 2015, the IRS states they may start assessing penalties.