MNSure

[Bees Knees]

So I'm going along, having a perfect tax season, then BAM! I get my first 1095-A from MNSure. Nothing filled in for SLCSP. Nothing entered for advance payment of Premium Tax Credit, when obviously he got something. I go on MNSure website...no way to look anything up without signing in with an account (which I refuse to do).....

I called the client and told him to call MNSure and read them the riot act. He needs a new 1095-A. Might just have to go on extension.

[TaxGuyBill]

You don't need to sign in for the MNSure numbers.

https://www.mnsure.org/individual-family/cost/silverplan-lookup.jsp

Why do you think he received the Advance credit if the 1095-A doesn't show it?

[Corduroy Frog]

Sketchy Information

Problem is, the guy is going to be poorly equipped to have an intelligent discussion with the state agency, as he most certainly is less knowledgeable about these things as yourself.

The middle column is available. About all we can count on from the client is how much money he is paying per month. If you had even one of the columns known to you, you could work with his "net" premium.

Don't know why I'm telling you what you already know. But unless your state agencies are more responsive in MN than in other states, reading them the "riot act" would accomplish virtually nothing. Govt workers seem to have an air of immunity, fostered by an atmosphere of non-accountability for their performance.

[Bees Knees]

You don't need to sign in for the MNSure numbers.

https://www.mnsure.org/individual-family/cost/silverplan-lookup.jsp

Why do you think he received the Advance credit if the 1095-A doesn't show it?

Those are 2015 plans. I find no historical tables showing the numbers for 2014.

[TaxGuyBill]

Read the whole page. The directions tell you that when you enter the dates, enter 2014 dates, and it will give you 2014 amounts.

[TaxGuyBill]

One more thing: When you sort it by premium amount, the 'filter' for only silver plan seems to disappear, so make sure you are look at the Silver plan number.

[Bees Knees]

Thanks, But You Guys are Wrong....sorry

I appreciate the help, but everyone is wrong and my gut instincts were right.

As requested, my client did call this morning and he did read them the riot act. The nice lady on the line looked it up and sure enough, his 1095-A was totally wrong. She gave him the correct Second Lowest Cost Silver Plan amount and the Advanced Premium Tax Credit Amount over the phone and said she would mail him a corrected 1095-A in a few weeks. Had I gone with the original 1095-A and assumed it was correct, he would have under paid his taxes by about $500.

OK, now it is time for a lecture from Uncle Bees Knees. Listen up!

TaxGuyBill

You don't need to sign in for the MNSure numbers.

https://www.mnsure.org/individual-fa...lan-lookup.jsp

Thanks for the link, but it does not give the correct amount. I plugged in the 1/1/2014 start date, as you said, plugged in his zip code, and came up with a list of 31 Silver Plans. I picked the second lowest cost plan, and that amount was about $10 per month different than what the lady told my client over the phone. So who do I trust? (I suspect it gave me the 2015 amounts, even though I requested the 2014 amounts)

I'm not going to take on my client's tax liability for assuming I am correct and the lady over the phone is wrong. As far as I am concerned, the corrected 1095-A that my client gets in the mail is the numbers I am going with, right or wrong. The reason? Because I cannot be held responsible for any additional tax and penalties my client may incur if I use the corrected amounts on the 1095-A.

TaxGuyBill

Why do you think he received the Advance credit if the 1095-A doesn't show it?

A good question. My gut told me it was wrong because the dollar amount for the premiums seemed low and my client seemed to remember he got a credit. But after looking at the link you provided, it appeared to me that maybe he did not get an advanced credit, as the premiums listed for the SLCSP were about the same as the premiums he actually paid. So I was about to suggest he go with no advanced payment, since his 1095-A did not say he got an advanced credit.

Then when he called this morning, the lady told him he got about $500 in advanced credit payments. Thus, had I not questioned the 1095-A, I would have filled out his tax return with him under reporting his tax liability by $500.

Corduroy Frog



Sketchy Information
Problem is, the guy is going to be poorly equipped to have an intelligent discussion with the state agency, as he most certainly is less knowledgeable about these things as yourself.

The middle column is available. About all we can count on from the client is how much money he is paying per month. If you had even one of the columns known to you, you could work with his "net" premium.

Don't know why I'm telling you what you already know. But unless your state agencies are more responsive in MN than in other states, reading them the "riot act" would accomplish virtually nothing. Govt workers seem to have an air of immunity, fostered by an atmosphere of non-accountability for their performance.

This is our problem. We think our clients are not able to provide tax information, so we think it is our job to do the research for them.
client: "I don't know what my cost basis in stock is."
us: "Oh, no problem. I will go online and figure out the cost basis for you."
client: "I don't know what the value of my donated items are."
us: "Oh, no problem. Lets go with $20 per bag."
client: "I don't know what the second lowest cost silver plan amount is."
us: "Oh, no problem. Let me go on the health care website and look it up for you."

WRONG WRONG WRONG

We have got to STOP thinking we are helping our clients by doing their homework for them. No attorney would do that without charging an hourly fee for it. Why are we in such a hurry to take on the responsibility of getting the correct numbers? This health care thing is way too complicated with way too many possibilities for error. I refuse to take on my client's tax liability because I think I should know how to go on a website (for free) and look something up for my client. No, its the clients responsibility to get that corrected 1095-A, or 1099-INT, or 1099-R, or W-2 when the one they got is wrong or missing.

Sorry for the lecture, but this really makes me mad at the system, for being so complicated and so screwed up, and then making us feel guilty as though it is our responsibility to fix it.

[Lion]

In some states, our clients can go online to get a corrected Form 1095-A. I don't think we can do that for them, as they must answer those "public database" type questions to get into their account. And, I agree entirely with Bees that this is so new and so complicated and so not tax that I have no time to do a client's legwork re ACA during tax season (which lasts all year now, anyway!).

I have been trying to make my clients own their data for their tax returns. Yeah, sometimes it's quicker if I just look up their car tax or whatever, but I do bump up my fees when I'm doing that type of thing, even list it on the invoice as Research or Bookkeeping or whatever fits so they see how much they could save.

[Corduroy Frog]

Reality Check

We have got to STOP thinking we are helping our clients by doing their homework for them. No attorney would do that without charging an hourly fee for it. Why are we in such a hurry to take on the responsibility of getting the correct numbers? This health care thing is way too complicated with way too many possibilities for error. I refuse to take on my client's tax liability because I think I should know how to go on a website (for free) and look something up for my client. No, its the clients responsibility to get that corrected 1095-A, or 1099-INT, or 1099-R, or W-2 when the one they got is wrong or missing.

Uncle Bees, I can handle the lecture, and can actually see your perspective. But your clientele may be more sophisticated in economics than most of mine.

Fact is, if we don't jump in and get some of this stuff done for them, it won't happen. However, there's nothing stopping us from charging additional fees to do so. Some of the information can only come from the client e.g. ("How many head of cattle do you have") or ("When will you have your baby's social security #). There are some things so obvious that the client MUST provide.

Most of my folks would be lost if they took on the insurance company to find out what should be on their 1095-A. Especially when they don't even know what's supposed to be on it. Or why the brokerage company did not re-invest their dividends from mutual funds. I often contact bankers and other financial sources, on my own time and charge the customer accordingly. If I think the client has a clue as to what information to retrieve, I will suggest they do so, or be charged an hourly fee if I do it.

Perhaps the most blatant circumstance is when a client tries to respond to the IRS on his own because he has received a CP2000 or some other notice. As most of us know, half of these notices are wrong in whole or in part, and most clients don't read the details including the tax year referenced.

We are all confronted with difficult returns where the only objective is to get the return filed as accurately as the circumstances will allow. Many times this requires the preparer to bridge the gap with essential information in the most expeditious manner irrespective of whose responsibility it shoulda woulda coulda been.

[Bees Knees]

I think there is a difference between client representation work such as in audits and CP2000 notices versus doing research for a client to calculate missing numbers. Audit representation has to do with helping the client when the IRS disagree with the facts presented on the tax return. Calculating numbers to put on that tax return is a whole different issue.

True, we can do a better job in many cases, but the issue has to do with taking on the responsibility for those numbers put on that tax return. When I get a client summary sheet of paper that provides numbers, I can put those numbers on the return (assuming they seem reasonable) without worrying about whether I am held responsible in case an audit proves them wrong. But if I am the one going on a website to find that number, and then tell the client this is the number I think is correct, I am now taking on responsibility if an audit proves it to be wrong.

There is a big difference, and I think our first priority is to our own practice, with our client coming in second.