IRS created a simplified procedure for adopting the final repair regulations for the small business by issuing a new Rev Proc 2015-20 today. The new Revenue Procedure 2015-20 allows small businesses to change a method of accounting under the final tangible property regulations on a prospective basis for the first taxable year beginning on or after January 1, 2014. Hence, small business taxpayers can avoid completing Form 3115 and reporting this as an accounting method change if they choose to use this simplified procedure for 2014 and adopt the repair regulations on a prospective basis.
Senate approves the bill, which extends the a number of tax breaks that were to expire in 2013 through 2014, The bill passed the Senate 76 to 16.
To know the details of the tax extenders, visit https://www.congress.gov/bill/113th-congress/house-bill/5771
The Internal Revenue Service (IRS) has issued the 2015 optional standard mileage rates. Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be
- 57.5 cents per mile for business miles driven, up from 56 cents in 2014
- 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
- 14 cents per mile driven in service of charitable organizations.
As a result of ObamaCare or the Affordable Care Act, all Americans with an income above a certain threshold will have to purchase health insurance. The provision referred to as the individual mandate is what will legally require most US citizens and legal residents to obtain private, employer sponsored or public health insurance (through state run exchanges) starting in 2014. For coverage starting in 2015, the Open Enrollment Period is November 15, 2014–February 15, 2015. Individuals may also qualify for Special Enrollment Periods outside of Open Enrollment if they experience certain events. However for the coverage to be effective January 1st, the enrollment should be completed by December 15th 2014.
The Fee/Penalty in 2015
If you don’t have coverage in 2015, you’ll pay the higher of these two amounts:
• 2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.
• $325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975.
The law is complex and the impact is far-reaching, but you don’t have to figure it out on your own. We can help.
We can help you comply with the law and ensure you receive the most benefits allowed under the law. Feel free to call us to assist you in evaluating your options.
You can also evaluate and apply for health insurance while the enrollment period is open at the links below.
Act soon and be insured.
Corporation and S-corporation federal income tax returns, for corporations with a December 31 tax year-end, are due March 17, 2014 (March 15, 2014, the usual date, is a Saturday).
If you miss the filing deadline or do not file Form 7004 for an extension of time to file, the IRS can impose late filing penalties that can become expensive to pay. For returns on which no tax is due, the penalty is $195 for each month or part of a month (up to 12 months) the return is late multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation’s tax year for which the return is due.
If you need additional time to compile the details, do file an extension by March 17th, 2014.