Key Tax Developments, Quarter 4

As the New Year begins – here are Quarter 4 2016 tax code and regulations changes to keep in mind:

• Automobile standard  mileage rates were reduced to 53.5¢ per mile for business autos and to 17¢ per mile for qualified moves or medical care visits.
• The maximum fair market values (FMVs) for employer-provided cars, trucks, and vans and for fleet vehicles are being adjusted for inflation.
• The IRS detailed requirements for professional employer organizations (PEOs) to become certified, as well as the procedures relating to suspending or revoking that certification
• The “21st Century Cures Act” was signed into law on December 13 and revived the ability of employers with less than 50 employees to establish HRAs along with extending transition relief for ACA excise taxes..
• Employers will have an additional 30 days (until March 2, 2017) to furnish individuals with the  2016 Form 1095-B (Health Coverage) and the 2016 Form 1095-C (Employer-Provided Health Insurance Offer and Coverage). The deadline was not extended for Forms 1094-B, 1094-C, 1095-B, or 1095-C, which remains February 28 for non-electronic filings or March 31 for filing electronically.
• New regulations are in place to create taxpayer-favorable rules or safe harbors when determining whether a taxpayer is eligible for a premium tax credit to offset health insurance costs. These regulations do not apply to anyone who knowingly provides incorrect information (considered reckless disregard). Taxpayers will not be considered to be acting reckless if the incorrect information was provided by an employer or other third party, or if they are following the advice of a counselor, agent, or broker.
• The IRS has determined that syndicated conservation easement transactions will now be considered listed transactions. Taxpayers must disclose their participation in reportable, tax shelter transactions by attaching an information statement to their income tax returns.
• Congress adjourned for 2016 without extending 35 temporary tax provisions that were set to expire at the end of last year. Congress may retroactively extend these provisions as they have in the past.  We will keep you informed if they do..

Call Burkett Burkett & Burkett, Certified Public Accountants, P.A. with any questions you may have or for assistance navigating these changes. Read the full article here.