jshtax

I noticed a few assets duplicate and even had some disappear. 

I see no need to file one.

So the family of 4 had insurance (minimum essential coverage) but received a subsidy. I calculated the repayment of the subsidy no problem up to this point. I think they could have exempted out of the insurance partially since it was not affordable (in excess of 8% of AGI). How do I handle the later being as it was not affordable?

Client has around $95000 AGI and is family of 4, They pay $1056/mth premium this is in excess of 8% of AGI even the lowest cost bronze plan is greater than 8%. First I calculated the repayment of advance credit now I think they may not have had to pay the premium in the first place. I filled out the 8965 but it did not impact the due/refund any. Any direction on what I need to do would be helpful. 

So you do not have to put it on W2? What was the release that contained this information?

It was for 2013 anyway not 14. We have over 250 to date and it just pops up like I am popping microwave popcorn. 

http://cchsfs-atx.custhelp.com/app/answers/detail/a_id/15000/session/L3RpbWUvMTQyNDY0MDc3MC9zaWQvNXVEMWNHZm0%3D

Does this fix actually work?

Joan I think you can since it was debt from their primary residence at the time. From my experience the IRS does not even look at 982s for primary residence. I have only had issues when trying to claim insolvency. 

While we are on topic of 982 has anyone ever used one for the business real estate exemption?

4 and 7 just do nothing. The IRS does not have the man power to enforce the 3115 and the do not have the authority to enforce the ACA.

I am getting this error more now than ever last year. I can work through the issue but is there a known fix?

Like the states have a way to enforce these laws.

What changed?

Form 8965 for calculating the penalty or reporting an exemption. You might start there by familiarizing yourself with that form and its instructions. Some exemptions can be claimed on the return without any additional paperwork, others require that the person apply for and receive the exemption from the marketplace and will be given an exemption # that is shown on the return.

 

Form 8962 is used for reconciling the amount premium tax credit the person or family is actually eligible for against any advance credit (subsidy) they used during the year to offset their premium payments.

 

You might want to take a look at Pub 5157 that is the VITA guide on the ACA used to train those preparers.

Thanks!

Out of 1000+ clients I might have 10-20 that will receive a 1095 and about as many that will be subject to the penalty for not having insurance. How/where do I calculate the penalty? Also if they are subject to penalty but could have been exempt how do you go about claiming the exemption?

The IRS does not have the resources to staff properly much less train people to audit a new area. Just file without the 3115 and mark the ACA box and move on.

Anyone else have 2014 crash multiple times on them so far? I can count 8-10 times already and once it lost all the work in the return. A few times I get the box I can X out of and keep working but most times it is the program is not responding error that crashes the entire program. 

I couldn't begin to tell you what the changes are that need to be made or how to apply for the changes.

$119 is expensive? Am I missing something here? $350-500 is the lowest I will take to touch a simple return.

Its not simply completing the 3115 as it is the potential reclassification of previously capitalized expenses now being written off since you can retroactively take the deduction. You can also do partial asset dispositions. Good times. I honestly do not know it well enough to accurately complete a return. 

there is going to be rampant noncompliance. I know many accountants/cpas that are just going to ignore the 3115.

just like the tangible property there is going to be rampant noncompliance. 

Am I supposed to be sad that fewer and fewer clients will be harassed by improperly trained IRS agents? My guess is there will be more mail in audits with 100% dis allowance that will require more of our time responding to a phantom agent on the other side.

I asked about the cost and it wasnt answered but I did get my free 48 hour trial version I have been too busy to open. 

Attended seminar earlier this week. It would not surprise me if there is 90-95% noncompliance on this topic. Not the first person in our office has done a 3115 so it should be fun. We are looking into this toolkit in hopes it helps. Has anyone found any other useful tools?

http://tprtoolsandtemplates.com/

Just to be clear we can start efiling 12-13 returns on jan 31st? I have a few old ones I need to file.