Christian

The Affordable Care Act was intended to provide a tax credit to subsidize private health insurance for Americans with too much income to qualify for Medicaid but no health insurance from their jobs. The law says they can qualify if they buy that insurance through an insurance exchange established by the state. The law does not say that the government can give tax credits to people who get their insurance on federal exchanges (assuming that people can get computer access to the federal exchanges in the first place). But 36 states have decided not to operate their own exchanges. Whether in malice or laziness or incompetence, those states decided to let Uncle Sam build their exchanges. The administration's position is that it was an accident, a mere oversight, easily corrected by the Internal Revenue Service in its regulations concerning the tax credit. Gleeful critics of Obamacare, however, say that it was an intentional oversight, aimed at giving the reluctant states an incentive to start their own exchanges. They have filed suits in Indiana, Oklahoma, Virginia, and the District of Columbia. Opponents of Obamacare think they have found the perfect chain shot to de-mast the law. If the government can't give the subsidies, it probably can't enforce the mandate for individuals to have health insurance. Neutral observers, if there be any, probably could agree that the Democratic majority that passed the law intended to give a subsidy to everyone who qualifies. But they would also agree that the IRS can't change a law by writing a rule that contradicts it. They would conclude that the only way out is for Congress to amend the Affordable Care Act.

I don't have any clients who want to deny themselves a tax credit. Rather the reverse.

A recent article I just read indicates what may be a critcal flaw in the ACA. In computing credits for those entitled the law was written indicating only those buying insurance through the STATE exchange would be receiving them. Apparently the drafters did not forsee the establishment of FEDERAL exchanges believing the punitive measures in the law were sufficient to force all states to set up an exchange. The Supreme Court killled this requirement so now they are scrambling to draft an IRS regulation to effect the credits on the federal exchanges. This is being challenged in federal court as the law clearly states STATE exchanges and says nothing about a FEDERAL exchange. I ordinarily would not take note of this but it was in the Barron's issue for this week.

Like all of you I have been watching the rollout of Obamacare. In Virginia we did not elect to set up a state exchange. This kept an expansion of Medicaid in our state from occurring. This being so is it y'all's understanding that low income folks then qualify for credits on the purchase of insurance on the federal exchange?

I recently tried to access their tv site only to receive a notice that I was being redirected. Nothing subsequently happened so I switched browsers with the same result. Any of you have any info on this ? It may be the site is down post season.

I've been setting up my hardware for the coming season and note ATX has advised a shipping date sometime in November. Does anyone know a more specific date?

In checking the new hardware requirements for ATX 2013 I note the CPU speed at 2.8Ghz. Alas my machine is 2.33Ghz but exceeds all the other hardware requirements. I think it will likely run a bit slow but otherwise will be ok. Any tech gurus out there wo can comment on this ?

I am sure they love Governor Christie in New Jersey. A breath of fresh air in a fish factory. For myself, I was astonished that one of our Republican governors would behave as he has. However, I believe we made the correct choice on Obamacare. I am already taxed quite enough to furnish federal goodies to the oppressed. It will likely bring in some additional business for me to pay taxes on to help fund another federal program sure to be chock a block with fraud and abuse.

Yes Governor McDonald must have taken a few lessons from some of our sanctimonious Yankee brethren in Illinois, New Jersey, and New York to name just a few.

Virginia did not agree to set up an exchange likely fearing the feds would cut off support after a few years. I am wondering if a non-filer files will he then be able to receive the credits here as Virginia apparently did not go along with the expansion of Medicaid ?

Thanks for all of your responses.

A client has a Simple IRA account to which he has contributed each year. Upon turning 70 1/2 this year he received his first MRD. As he plans to continue in the side business he operates he questioned his fiduciary about continuing to contribute each year as long as he operated his business. They advised that yes he could contribute each year even though he had now begun receiving a MRD each year as long as he was still in business. I am going to check this but would like to know if any of you have encountered this situation and if so what your determination was.

A client passed on and apparently had set up some form of trust into which all her assets will be placed. Two sons were named in her will as trustees to effect her will. They were not required to be appointed by our local circuit court and have no court certified document as a result having instead one stating their appointment to her trust as co-trustees. As she will receive a refund from the IRS I am attaching a copy of this to her Form 1310 for both brothers. Do y'all feel this will meet the requirements so the refund will be processed ? This is one of those new wrinkles I am forever encountering.

Gee. I was unaware H&R Block would offer to buy a practice out. I'll have to keep that in mind when i pull the plug. With my luck it would likely be a posthumous purchase.

ATX is still advertising their RTRP exam study program. You have to wonder with whom are RTRPs registered. An agency which no longer recognizes the certification ?

That's right it is my service that brings them back. However, the certificate reinforces their confidence in my abilities and confirms them in their choice of me as their tax guy.

That is of course true. However, it was an IRS sanctioned exam and that is what I want them to know. It is not false to say " I passed the IRS exam". The test cost me a not inconsiderable amount of money and with no chance of any refund from the IRS I am going to darn well derive a benefit from my efforts.

I let clients know I passed the required testing and display my certificate in my office. I really do not expect the Service to be able to resurrect the program. I think they will lose on appeal and have virtually no chance of getting authority for it out of a Republican House of Representatives especially with all the trouble they are currently in.

I wonder what happened to the registered practitioner listing they were going to set up ? The court gave that the boot as well I guess.

Ah fond hope. How soon thou dost taketh flight ! I'l just raiseth my fees.

After reading a book entitled ObamaCare Survival Guide I feel comfortable with my responsibilities under the act. I was concerned I along with my fellow practitioners were being drafted as unpaid agents of the federal government. One of our members remarked in a previous discussion of this topic that our involvement would amount to basically checking a yes or no box with respect to a client's required health insurance. Having read this book I fall in with his thinking. Virginia is not going to particpate in the Medicare expansion of the law. Individuals lacking insurance will most likely purchase what is required from a federal exchange. Their required insurance will be handled by federal employees. Insurance carriers are required to file reports of who is covered as well as levels of coverage to the IRS. My guess is as in Massachuesetts they will have to send a copy of some sort to the insured which will be given to us or used by themselves if they self prepare their own returns. For me, this is a great relief. We have enough to do already as practitioners without any additional burdens!

Well no wonder my files load slowly ! In talking to tech support I am told the 1.4 ghz processor will work but client files will load slowly. Any of you know if this processor speed can be boosted or can I replace it with another using my existing Compac computer ?

Good grief I just bought a new machine with Windows 7 64 bit and it's processor is 1.4 Ghz. No wonder the files load slowly ! Darned if I am buying another machine.

Jeesh ! I had no idea my question would set off such a hurricane of response!

Be a sugar daddy and take some shapely sweetie down to Cancun for a week ! If you survive you'll feel much better. If not, we can be reasonably sure you went out with a big smile on your face.