ACA Impact & Return Pricing

[RitaB]

And we ought to try to be consistent with clients, too.  Don't need to give them a bunch of winks this year and then read them the riot act next go round.  They need to think we're tax professionals.  They have enough mechanics and hair dressers.

 

Having said all that high and mighty stuff up there, I hope to GAWD this is a bad dream and the ACA as we [don't] know it dies a quick and efficient death.  It's just ridiculous what we are gonna have to deal with here.  My clients can't find their butts with both hands and a flashlight.  I want to crawl in a hole and wait for the end.

[NECPA in NEBRASKA]

I don't want to have a client get audited down the road after they have the ability to track ACA info and then find out that they can and will penalize taxpayers and preparers for prior years. Karen can say all that she wants, but I have been to way too many tax seminars where I am hearing the opposite. I'm getting my clients ready now for an increase and needing more information. 

[kcjenkins]

I have to agree with that.  Just because they 'say' that now does not bind them at all.  The 'law' says otherwise.  Protect your clients and yourself by assuming a strict interpretation.  

[Jack from Ohio]

Having said all that high and mighty stuff up there, I hope to GAWD this is a bad dream and the ACA as we [don't] know it dies a quick and efficient death.  It's just ridiculous what we are gonna have to deal with here.  My clients can't find their butts with both hands and a flashlight.  I want to crawl in a hole and wait for the end.

This is a pipe dream.  There may be some parts that get the axe, but due to the results of the 2012 elections, it will be with us for the forseeable future.

[Jack from Ohio]

I don't want to have a client get audited down the road after they have the ability to track ACA info and then find out that they can and will penalize taxpayers and preparers for prior years. Karen can say all that she wants, but I have been to way too many tax seminars where I am hearing the opposite. I'm getting my clients ready now for an increase and needing more information. 

 

 

I have to agree with that.  Just because they 'say' that now does not bind them at all.  The 'law' says otherwise.  Protect your clients and yourself by assuming a strict interpretation.  

The IRS has no mechanism in place to do any verification.  Proper verification will not be in place till tax year 2016.  The IRS controls us by the use of fear.  I combat that method with facts.

 

For the record, Karen Hawkins IS the Preparer Enforcement Department.

[ILLMAS]

The IRS has no mechanism in place to do any verification.  Proper verification will not be in place till tax year 2016.  The IRS controls us by the use of fear.  I combat that method with facts.

 

For the record, Karen Hawkins IS the Preparer Enforcement Department.

 

I wished some of you would of heard her talk at the IRS nationwide tax forum, she reminds me of the judge that sued the dry cleaners for $54M for losing his pants.

[RitaB]

This is a pipe dream. 

 

Shhhhh.  If you love someone, let them sleep.

[kcjenkins]

This is a pipe dream.  There may be some parts that get the axe, but due to the results of the 2012 elections, it will be with us for the forseeable future.

Now, Jack, those of us old enough to know what the term "pipe dream" means could take exception to being accused of drug use! 

[RitaB]

Now, Jack, those of us old enough to know what the term "pipe dream" means could take exception to being accused of drug use! 

 

I had to look it up. 

[SaraEA]

This year will certainly be difficult for all of us, but after we digest the new forms and rules and taxpayers realize their responsibilities things should go much smoother.  I do some returns for residents of Massachusetts, which has had mandatory health insurance for years.  The insurer gives them a statement with a very long number that shows how many months they had creditable insurance.  You pop the number in and that's the end of it.  It's more complicated if they didn't have insurance all year, but the software handles it well.  The federal forms will be harder because of the exceptions to the penalty, advance credits, etc. It's up to the clients to gather this info, so we just have to wait for them to produce it.

 

Those people who have affordable insurance are the ones wishing the death of the ACA.  Those whose employers don't offer insurance or who have pre-existing conditions, diabetes, mental health issues, weight problems, hypertension, and a host of common problems think the act is a Godsend. My own child had surgery to realign a bone a few months before going off my Cobra.  Nothing like cancer or knee replacement, just an alignment. Everything went well but insurers don't want to touch anyone who had surgery within the past couple of years.  Ended up with very expensive insurance that didn't cover anything (not even a flu shot!).  Thanks to the ACA he now pays half as much for decent insurance with a reasonable deductible.

[michaelmars]

I still want to get them trained this year.  A little time spent this year on education will hopefully reduce the time requirement in the future.

 

I also want them to get used to there being two charges on their invoice: the tax prep charge and the ACA prep charge.

THE only problem I see is if next year is check the box, how can you charge the same amount as this year when you are doing a large client review.  When the client in 2016 says, nothing changed from 2014, same job etc, you might have to reduce that fee.  I am going to list the charge anyway and likewise for the 3115's.  I already told most of my real estate clients of a 50% fee increase at the minimum.

[easytax]

THE only problem I see is if next year is check the box, how can you charge the same amount as this year when you are doing a large client review.  When the client in 2016 says, nothing changed from 2014, same job etc, you might have to reduce that fee.  I am going to list the charge anyway and likewise for the 3115's.  I already told most of my real estate clients of a 50% fee increase at the minimum.

 

Next year will not be check the box as more forms will be required (just not for the 2014 filing). That will help as entry and figuring them out will be time consuming.

[pikester1967]

"Taco Bell is going to start selling nachos and chicken nuggets wrapped in a tortilla. In other words, thank God we're going to keep Obamacare." –Conan O'Brien

 

After reading all this ACA information, plus just returning from my siesta, I've come to one conclusion! I'm hungry anyone ready for lunch?

 

         
 

[Jack from Ohio]

Many of the posts in this thread indicate that there is a huge knowledge gap about how the ACA will affect 2014 tax preparation.  I would suggest that seeking out training at this 11th hour for anyone who sees it as only a slight change for 2014. 

 

If you have not been to adequate training, be prepared for a blizzard of CP2000 forms next year.

[JohnH]

I'll admit to not having gotten any specialized ACA training, beyond online research and what's available on this and other forums.  Given my schedule, I'm not likely to do so before mid-January.

 

But here is a general question anyhow.  Feel free to accuse me of being lazy if so inclined - a guilty plea is hereby entered.  Would it be fair to say that clients who are covered by Medicare do not have any ACA-related issues?  Secondly, is it fair to say that clients who are covered by large-company health plans do not have any ACA-related issues?  If so, then I think I can send about a dozen remaining clients to HRB or someone else this yea,r and as a side-benefit, hasten my transition to full retirement through attrition.  

[Jack from Ohio]

I'll admit to not having gotten any specialized ACA training, beyond online research and what's available on this and other forums.  Given my schedule, I'm not likely to do so before mid-January.

 

But here is a general question anyhow.  Feel free to accuse me of being lazy if so inclined - a guilty plea is hereby entered.  Would it be fair to say that clients who are covered by Medicare do not have any ACA-related issues?  Secondly, is it fair to say that clients who are covered by large-company health plans do not have any ACA-related issues?  If so, then I think I can send about a dozen remaining clients to HRB or someone else this yea,r and as a side-benefit, hasten my transition to full retirement through attrition.  

Your questions reinforce my suggestion.  Do NOT wait till mid-January.  This issue only gets larger and more complicated for tax year 2015.  Answers to your questions require more space than should be taken here.  Trust me on this.

[JohnH]

OK. Well, thanks for the warning.  I do trust you.  I guess you mean that there is NO situation in which ACA-related issues won't be a factor. Not even when both spouses are over 65 and on Medicare.

 

But not sure how much more emphatic I could be on the timing.  There's no way I'll be looking at it until after mid-January - that isn't even an option. 

 

Looks like many more extensions will be in my future.  

Maybe yet another vehicle for transitioning into retirement through attrition.

 

Right now I'm thinking of how to word my client letter.  Best thing I've come up with so far is "If your situation even remotely involves ACA-related issues, expect to file an extension.  If that isn't acceptable, then you need to contact someone else. Trust me on this."  

 

It's down to either that or "Why don't you all just go somewhere else this year?"

[Jack from Ohio]

OK. Well, thanks for the warning.  I do trust you.  I guess you mean that there is NO situation in which ACA-related issues won't be a factor. Not even when both spouses are over 65 and on Medicare.

 

But not sure how much more emphatic I could be on the timing.  There's no way I'll be looking at it until after mid-January - that isn't even an option. 

 

Looks like many more extensions will be in my future.  

Maybe yet another vehicle for transitioning into retirement through attrition.

 

Right now I'm thinking of how to word my client letter.  Best thing I've come up with so far is "If your situation even remotely involves ACA-related issues, expect to file an extension.  If that isn't acceptable, then you need to contact someone else. Trust me on this."  

 

It's down to either that or "Why don't you all just go somewhere else this year?"

If you are intending tor 2014 to be your last year in practice, your plan will work.  If you intend to be here for tax year 2015, better put your learning hat on.

[JohnH]

That's reassuring .  

The 2015 practice year is a long way off, and plenty of time to get up to speed (assuming I care to do so).

[mcb39]

It is fair to say that Minimum Essential Coverage does include Employer-sponsored plans, including COBRA and retiree coverage.  Also, Coverage under specified government-sponsored programs; which would include Medicare.  There are other exemptions as well.

[JohnH]

^{Well that certainly puts a new twist on things.} 

^{So maybe I am back to the original dozen or so.} 

 

^{Maybe I'll just tell them in my letter that I haven't bothered to read up on ACA and don't intend to until well into the extension season.  Some of those affectred may decide that if I'm too lazy/distracted/uninterested then perhaps they should go somewhere else.  But then, maybe my position should be that if they don't have coverage and are too lazy/distracted/uninterested in their own health and finances, perhaps I don't want them as clients any more.  No valid reason I can think of to volunteer to be saddled with their lack of foresight.} 

 

^{H-m-m-m;  this is beginning to look very similar to the EIC conundrum from a few years back.}

^{I found that one very easy to resolve.} 

[michaelmars]

I have gone to 3 seminars and have a grasp but of course so many more questions will pop up once we start doing the returns.  I suggest Eric start a fund donation link so we can contribute to Jack for all the questions he will obvious be answering here.

[JohnH]

I'll contribute to it (and I'm talking over and above what I normally contribute to the base cost of the forum)

.

[RitaB]

 

And I made 100 on the CE quiz.

[HV Ken]

Just got an email from ATX with the following:

 

If you don't think ACA will affect you, think again:

• Every 1040 taxpayer will have to make 1 of 3 choices on their return
• 41 million people are uninsured
• 7.1 million people are on the healthcare exchange

ACA is complex and any incorrect reporting can delay you client's refund.

• New Form 8962 (15 pages of instructions)
• New Form 8965 (12 pages of instructions)
• Form 8960 (20 pages of instructions)
• 1095-A, 1095-B 1095-C

As National Taxpayer Advocate predicts, it will be "the worst tax season in thirty years."