Archives for March 2017

Small Business Sponsored Health Reimbursement Accounts Now Allowed

March 28, 2017 by Frank

Prior to tax years beginning January 1, 2017, employers who reimbursed employees for the cost of premiums for individual and family health coverage were subject to the Patient Protection and Affordable Care Act (ACA)’s excise tax. This is because the IRS took the position that group health plans that reimbursed or paid employee premiums for individual coverage were subject to an excise tax (up to $100 per affected individual per day) for violating the group plan rules. Under transition relief, small employers were temporarily exempted from excise tax from January 1, 2014, to June 30, 2015.

Under the pre-2017 rules, if an employer desired to help employees pay for health care coverage and avoid the onerous excise tax, those monies had to be paid to the employees and included in their W-2s as compensation. The employees could then use those “reimbursement” monies to pay for health care coverage or for any other purpose.

For tax years beginning after December 31, 2016, [Read more…] about Small Business Sponsored Health Reimbursement Accounts Now Allowed

How to Avoid a Geriatric Surprise Bill

March 21, 2017 by Frank

Erin Arvedlund of Phillynews.com recently wrote an article alerting consumers about health care providers and “bed hold” charges. We believe that many persons are unaware as to what a “bed hold” charge is and can potentially incur significant unexpected charges.

What is a “bed hold” charge? An example would be when a resident at an assisted-living facility has a mishap and is transferred to a hospital for medical treatment. The assisted-living facility can charge its residents [Read more…] about How to Avoid a Geriatric Surprise Bill

Taxpayer Not Entitled to Unsubstantiated Employee Business Expenses and Hit With 20% Understatement of Tax Penalty

March 15, 2017 by Frank

In the U.S. Tax Court case of Chaudry, T.C. Summary Opinion 2015-74, (Dec. 21, 2015), an individual’s claimed unreimbursed employee business expenses were disallowed when audited by the IRS. In addition the taxpayer had to pay the accuracy-related penalty.

Mr. Chaudry had claimed employee expenses of $9,100 and $16,111, respectively, for tax years 2010 and 2011 on his Schedule A. These expenses included business expenses for uniforms, reference books, respiratory equipment, clinical scrubs, professional clothes, seminars, education, laundry, cell phone, parking, tolls, transportation and other miscellaneous expenses. At trial, [Read more…] about Taxpayer Not Entitled to Unsubstantiated Employee Business Expenses and Hit With 20% Understatement of Tax Penalty

6.5 Million Individuals in U.S.A. Are Age 112 or Older. Really?

March 7, 2017 by Frank

We think it relevant to remind individuals to periodically check on their Social Security earnings and future benefits. The Social Security Administration (SSA) provides an online service which we discussed in our December 2, 2014 and March 12, 2013 blog postings.

The SSA Office of the Inspector General issued an audit report showing that there are 6.5 million SS numbers who are age 112 or older that do not have a death entry. Are Americans living longer, or are the SSN’s records in error? Ironically, the Gerontology Research Group reported [Read more…] about 6.5 Million Individuals in U.S.A. Are Age 112 or Older. Really?