The Tax Professionals Blog
Tax Treatment of Advanced Premium Tax Credit (APTC) Payback for Medical Deduction Purposes
Posted by Lee Reams Sr. on
Regarding the situation in which a client has to pay back part of the advance PTC, students have asked if that payback is a deduction in the year paid back (like, for example, state income tax) or in the year that the advance PTC was allowed. They also want to know how an additional amount of PTC is treated when the return is prepared: Does it affect the medical deduction on Schedule A or the above-the-line deduction for those who are self-employed? According to IRS Pub 502, advance PTC is netted in the year of the insurance.Estate Tax Exemption Going Down?
Posted by Lee Reams Sr. on
On April 20, 2016, House Ways and Means Committee Ranking Member Sander Levin (D-MI) introduced legislation that he said would bring fairness to the tax code by restoring the estate tax and gift tax to the more sensible levels that were in effect in 2009. While it is hard to know at this time what the fate of this bill will be, this proposal points to the importance of tax preparers and estate planners’ carefully evaluating the need to file a 706 to make the deceased spousal unused exclusion election (portability election).
Are you a CRTP That Can No Longer Represent Your Clients before the IRS?
Posted by Lee Reams Sr. on
If you failed to check the box in your IRS PTIN account that you would abide by Sub-part B of Circular 230 you can no longer represent your clients before the IRS. This is true even though CRTPs are exempt from taking and passing the special IRS Annual Federal Tax Refresher (AFTR) course you were still required to check that box on your PTIN account to obtain your annual “Record of Completion.”Late Filing & Late Payment Penalties Relief
Posted by Lee Reams Sr. on
The Internal Revenue Manual (IRM 20.1.1.3.6.1) provides a one-time administrative abatement of late filing and late payment penalties, commonly called the “first time abatement” (FTA) penalty relief, where a taxpayer has:
The Christian Healthcare Ministry Exemption
Posted by Lee Reams Sr. on
Several students have submitted questions related to health care “insurance” obtained from the Christian Healthcare Ministry and the fact that no Form 1095-B or 1095-C has or will be issued.