Message from Nelson & Company, P.S., CPAs
Keeping up with Obamacare
We promised in our June bulletin to give you more details of the Affordable Healthcare Act. After reading numerous articles from numerous experts, and reviewing the government's web pages, we've come to the following conclusions:
1. Bottom line: If you are a business, you need to consult with a healthcare benefits specialist. This is whether or not you provide some kind of healthcare for your employees, and have more or less than 50 employees.
The bill itself is over 2,700 pages, and the regulations promulgated so far by the Department of Health and the IRS is over 25,000 pages. With all the rules and regulations, and with the many insurance plans coming on the market now, only someone who specializes in health benefits on a fulltime basis can properly advise you.
2. If you are an individual, i.e. self-employed or your employer does not provide you with any health benefits, you need to go to http://www.wahbexchange.org/or http://www.wahealthplanfinder.org/ by October 1st to sign up for health benefits. If you do not, there will be penalties with your 2014 individual income tax.
I know this is not what many of you would like to hear, but our study of the Act leads us to say that the tax portion is actually only a very small part of the Act when compared to the type of benefits, premiums, federal subsidies, etc.
Estimated Quarterly Payments for Individual Income Tax
IRS rules require that estimated payments be made in four equal installments, due January 15, April 15, June 15, and September 15. As long as the payments are made equally, and total or exceed your prior year's tax, there should be no penalty.
Many clients have said it's difficult to save up and send the money in for those four due dates. There is nothing in the law preventing you from making more than the 4 required payments. Some taxpayers find it easier to make monthly payments. We can provide you with vouchers and envelopes. The IRS will record the payments for the appropriate period. For taxpayers that are paid on an irregular basis, i.e. those who earn sales commissions, you can pay a percentage of each commission, say between 15 to 20%, as you are paid. By making several small payments, it may be easier to budget the necessary funds to be in compliance with the law.
David S. Nelson, CPA, CTRS
NELSON & COMPANY, P.S.
Certified Public Accountants
IRS Times & Inquirer
Reality "Housewife" Owes IRS
One of America’s most famous housewives owes money to the Internal Revenue Service.
The IRS filed a tax lien against Lynne Curtin, of Capistrano Beach, Calif., who formerly appeared on the reality TV show Real Housewives of Orange County.
According to the tax lien, first reported by TMZ, Curtin owes $32,006.24 in back taxes to the U.S. government.
Curtin was a cast member on Real Housewives of Orange County for two years from 2008 to 2010. The show presented her life as a married, stay-at-home mother raising two teenage daughters, Raquel and Alexa.
After leaving the reality show, Curtin appeared as a guest on another TV show, Top Chef Masters.
====NOTICE REQUIRED BY IRS====
This bulletin is intended to inform you about the services provided by N&C. It is not intended nor should it be used as a substitute for any professional tax or accounting advice. You should seek advice directly from a qualified professional before making any decisions or taking any action on any accounting or tax related issues. We provide this "as is" and disclaim all warranties.