Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Be careful of fake IRS contacts…

Posted by taxguru on October 20, 2014

Fake IRS agents scare many consumers into paying up

Even if you’re not sure whether somebody is really with the IRS or not, the safest way to approach it is to have your professional tax advisor handle all interfaces with IRS on your behalf.  S/he should be able to quickly spot a scam, as well as protect you from the improper tactics used by some actual IRS employees.

 

Posted in IRS, scams | Comments Off

IRS Attacks were coordinated by those in the White House

Posted by taxguru on October 14, 2014

It was obvious from the beginning that the IRS attacks on opponents were initiated by bHo and his accomplices, such as his chief advisor.

Senator Pat Roberts: Valerie Jarrett Was Involved In IRS Scandal

Of course, the trillion dollar question is, Who in the GOP has the stones to prosecute anyone in the bHo Regime for any of their blatant crimes?

 

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More Tax Season complications ahead…

Posted by taxguru on October 8, 2014

As has been the case for decades, our rulers in DC can’t resist the temptation to make everything more complicated.  Tax pros who worry about losing clients to do it your-selfers, it’s just the opposite. 

 

IRS warns of delays if U.S. Congress fumbles tax ‘extenders’

 

Health law waivers: Too complicated to claim?

 

From Greatland:

Businesses Face Learning Curve on new IRS Rules for Affordable Care Act Reporting for 2015

 

Greatland offers information, guidance on 1094 and 1095 forms

 

Grand Rapids, Mich., Oct. 7, 2014 – While businesses are preparing to issue W-2s and 1099s for the past year, they’ll also need to start learning about IRS forms 1094 and 1095 in preparation for the 2015 tax year and beyond.

 

Greatland, one of the country’s leading providers of W-2 and 1099 products for business, is offering information about the forms, reporting requirements and suggestions on how to avoid penalties once filing is required next year.

 

According to the Internal Revenue Service (IRS), the Affordable Care Act requires employers to file annual information returns with the IRS and furnish statements to employees on health plan coverage information beginning in 2016 (for reporting on calendar year 2015).

 

Information is reported by insurers and self-insured employers to individuals using Form 1095-B or, if the employer is also subject to the employer shared responsibility provisions due to its status as an applicable large employer, Form 1095-C. The employer must also provide all Forms 1095-B or 1095-C, as applicable, to the IRS in packages using the appropriate transmittal form.

 

“We expect to see an increase in enforcement next year and failure to comply may result in reporting penalties,” said Bob Nault, Greatland’s CEO. “These forms will essentially serve as a proof of coverage for employees, so it’s imperative for businesses to be familiar with this change and ready for next year.”

 

Below is a summary of each new form related to the Affordable Care Act:

 

  • Form 1095-B—Health Coverage

Insurers and self-insured employers that provide health plans are required to report on the individuals who are covered by their health plans. These providers will furnish each primary insured with Form 1095-B that will indicate the months during the calendar year that the insured and his or her family members had coverage under the plan.

 

  • Form 1094-B—Transmittal of Health Coverage Information Returns

Form 1094-B is the transmittal form for Form 1095-B.

 

  • Form 1095-C—Employer-Provided Health Insurance Offer and Coverage

Employers with 50 or more full-time employees (including full-time equivalent employees) are required to report whether or not they offered health coverage to their employees by providing each full-time employee with Form 1095-C. This form asks for information such as whether the employee was offered coverage and for which months and the employee’s share of the lowest cost monthly premium for self-only minimum value coverage. A large employer with a self-insured plan will only be required to submit Form 1095-C, as the information in Form 1095-B can be included in Form 1095-C.

 

  • Form 1094-C—Transmittal of Employer-Provided Health Insurance offer and Coverage Information Returns

Form 1094-C is the transmittal form for Form 1095-C.

 

To avoid penalties, businesses must be aware of timing for this new requirement. Form 1095-B or Form 1095-C, as applicable, must be provided to employees by January 31, similar to W-2s. This means that statements for 2015 must be provided no later than February 1, 2016 (because January 31, 2016 is a Sunday).

 

 

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IRS still attacking bHo critics

Posted by taxguru on October 8, 2014

Producer of anti-Obamacare movie ‘Sick and Sicker’ hit with IRS audit

 

Posted in audits, IRS | Comments Off

Lois Lerner Update

Posted by taxguru on October 7, 2014

For someone who claims to have done nothing wrong, she’s not very willing to discuss things publicly.

  Funny video of Lois being pursued near her residence.

 

 

 

 

Posted in IRS | Comments Off

The Question With No Answer

Posted by taxguru on October 5, 2014

Interesting debate between Andrew Klavan and Bill Whittle on the question that nobody can agree on.

 

What is a Reasonable Tax?

 

 

Posted in TaxReform, video | Comments Off

IRS Refund Parody Fools Some People

Posted by taxguru on October 4, 2014

The Onion isn’t the only parody site that fools people with what appear to be true news stories.  This one from The National Report fooled some people because, as with all good humor, it is something that people could very easily believe to be true.  Of course, with the continuing financial fiasco in DC, I wouldn’t bet against something like this becoming reality in the future. 

2014 Federal Tax Refunds To Be Delayed Until October 2015

I learned about this from an article on Snopes.com.

 

 

Posted in humor, IRS | Comments Off

Tax Info Isn’t Confidential

Posted by taxguru on October 4, 2014

Except for non-profits, IRS is supposed to keep our tax return data secret from anyone else.  However, if the taxpayer happens to oppose the bHo Regime’s policies, the supposedly confidential tax info is accessed by political hatchetmen and released to the media and other bHo supporters.  This is obviously illegal, but nobody has the guts to prosecute supporters of the first black president for any crime; so they have free reign to continue violating our rights.

White House Can’t Hide Look Into Koch Tax Data Misuse

 

 

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ObamaCare Has Increased Taxes

Posted by taxguru on September 23, 2014

From a Client:

Subject: Kerry, do you happen to know…

Kerry, at a recent Round Table one of our Members made the assertion that “the ACA is lowering the cost of care.”  To which I retorted, “yes, but at the taxpayers’ expense.” To which he responded “the tax rates haven’t increased since 2008.”

It’s hard for me to believe that millions of Americans are getting basically a “free lunch – or heavily subsidized health plan (or even expanded Medicaid)” without more tax dollars going toward it.  Figured you know these things.  Is there something you can point me to that broadly covers how the tax structure (for those who are paying taxes) has changed since 2008 in general, and particularly since 2010, when the ACA went into effect.  Many thanks in advance,


My reply:

Your gut feeling was correct and the member was wrong.

The actual increase in taxes for ObamaCare is spread out over a number of ways.

As you can see on this handy recap of Federal tax rate brackets, there was a new 39.6% bracket added to individual income tax rates for 2013. From 2003 through 2012, the top rate was 35%.

On top of that, there was also a new 3.8% tax starting in 2013 on net investment income that was directly from the ObamaCare legislation. That tax, on Form 8960, actually cost you $5,806 for 2013.

Additionally, the maximum tax rate on long term capital gains has increased from 15% (2008-2012) to 20% (2013 & after).  While some may look at that as just a five percent increase, it actually represents a 33.3% increase from the previous top rate.

There is an interesting article on states having to pay additional costs for ObamaCare:

Who’s paying the new Obamacare tax? You

Overall, the percentage of taxes being paid by the top earners in this country continues to increase every year.  There are lots of articles on this, such as this one:

The rich do not pay the most taxes, they pay ALL the taxes

One aspect that is swept under the rug is the fact that a lot of the increased spending by the Federal government isn’t really being paid directly by anyone right now because it is being borrowed from the Chinese government. The fact that those loans, plus interest, will need to be repaid someday, is something our rulers in DC refuse to acknowledge as they keep adding trillions of dollars to the debt.

I hope this info is useful for you.

Kerry

 

Follow-Up:

This is great! Thank you very much….now I just need to break it to him!

 

 

Posted in ObamaCare, TaxHikes | Comments Off

IRS Criminal Actions Will Continue

Posted by taxguru on September 22, 2014

Exclusive: Lois Lerner breaks silence – She obviously knows that she won’t be punished for any of her crimes; so they will continue at the IRS by her accomplices. 

 

Lois Lerner Compares Herself To Jeffrey Dahmer – A vivid analogy. 

 

Koskinen: ‘Hard Drive Crashes Continue As We Speak’

 

IRS Commissioner: We Follow the Law ‘Wherever We Can’ – What a weasly phrase. Try using this explanation during an IRS audit and see how far that gets you.

 

 

Posted in Crooks, IRS | Comments Off

 
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