2015 health insurance requirement

[TAXNJ]

Perfect

..to respond, as your questions are certainly fair enough.

Certainly over the years there should be considerable chagrin amongst preparers for the institutional sources I mention, as time and time again they miss their deadlines, submit incorrect information, and create errors. Should I direct strong comments to them? I certainly would if it changed anything. They don't listen to us, they don't listen to IRS, they don't even listen to their customers. It is particularly irritating when the IRS will go after a taxpayer for being ONE DAY LATE on paying estimated taxes, but will not even think about going after these institutions for their lack of compliance.

Client's responsibility? It is their responsibility to file a tax return. Is it fair for them to know the documentation requirements? There are new forms they have never seen and 800,000 1095-A forms incorrectly issued last year -- in fact so many the IRS simply ate the money differential rather than require these aforementioned institutions to reissue. My point is if a client knows this much about what is happening in this arena they would be qualified to fill out their own taxes without assistance from us.

You ask what I plan to do? I will prepare their taxes from the information available at the time, and if I know something is blatantly missing I would have to postpone doing their return - even extending if necessary. I will NOT take the position that the shortcomings are those of the client and not my problem. Expecting them to show up for their appointments with all documents on time is simply not real world.

Make sense?

Yes perfect sense. Sounds like you and TAXEA are saying the same thing but different wording.

Also agree that preparers (and clients) are on the receiving end quite a lot of incomplete info by those who is suppose to provide all and correct info and who are not held accountable. It is frustrating to preparers and clients. Frustrating now and more so when the tax season begins.

Should not be, after all many millions of taxpayers money spent for a system to work properly.

So we can't blame the preparers who are just as annoyed as you.

Happy Thanksgiving

[Nashville]

I'll Do My Best

..to respond, as your questions are certainly fair enough.

Certainly over the years there should be considerable chagrin amongst preparers for the institutional sources I mention, as time and time again they miss their deadlines, submit incorrect information, and create errors. Should I direct strong comments to them? I certainly would if it changed anything. They don't listen to us, they don't listen to IRS, they don't even listen to their customers. It is particularly irritating when the IRS will go after a taxpayer for being ONE DAY LATE on paying estimated taxes, but will not even think about going after these institutions for their lack of compliance.

Client's responsibility? It is their responsibility to file a tax return. Is it fair for them to know the documentation requirements? There are new forms they have never seen and 800,000 1095-A forms incorrectly issued last year -- in fact so many the IRS simply ate the money differential rather than require these aforementioned institutions to reissue. My point is if a client knows this much about what is happening in this arena they would be qualified to fill out their own taxes without assistance from us.

You ask what I plan to do? I will prepare their taxes from the information available at the time, and if I know something is blatantly missing I would have to postpone doing their return - even extending if necessary. I will NOT take the position that the shortcomings are those of the client and not my problem. Expecting them to show up for their appointments with all documents on time is simply not real world.

Make sense?

[TAXNJ]

How

With this approach, then "nothing" would be your problem and they wouldn't need you to prepare their taxes.

No comment as to how you operate with or without the documents, obviously that's your business. But to expect clients to know what's going on is Draconian at best. We are discussing the 1095 topic on this very thread because WE don't know what's going on. How can we expect clients to even know what they are supposed to receive and whether they are supposed to have it on time for tax prep?

An additional consideration is the first-year nature for some of this. Yes, there was a requirement for 2014 but the big-money sources ignored it. Do we really expect the institutional community to have this under control? (Remember the IRS doesn't go after these huge institutions with the same delirious pleasure that they come after us) These are the same parties which issue 1099-DIVs, 1099-Bs, 1098-Ts, K-1s for limited partnerships, etc. and they are almost NEVER on time especially when corrections are considered.

And this is the client's problem? Gimme a break...

Normally you provide reasonable reply posts.

Now in all fairness, educate us on how you will help the client if the 1095, 1099-DIVs, 1099-Bs, 1098-Ts, K-1s for limited partnerships, etc. are not received by the client? For example, do you contact all the institutions and/or the IRS on behalf of the clients or what do you do?

The "WE" should know what is going on (no excuse) - there are and have been many seminars and literature available addressing this issue and the responsibilities of all parties.

Maybe your strong comments should be directed at those you mention, the big-money sources, "institutional community " & the "IRS", and not a reply poster who did not set the rules and the responsibility of issuing and educating the client on this issue, but rather ensure his clients have all proper documents to properly file the return.

[Nashville]

Beat up on the Client

If any 1095 is issued for 2015 and beyond I will require it to complete the return. If the return has to be extended...so be it. The responsibility to provide all pertinent documents belongs to the client, not me and I won't file a return I know is not complete because I don't have a document that was issued to TP and TP didn't give it to me. They are delaying their own refund. Not my problem.

With this approach, then "nothing" would be your problem and they wouldn't need you to prepare their taxes.

No comment as to how you operate with or without the documents, obviously that's your business. But to expect clients to know what's going on is Draconian at best. We are discussing the 1095 topic on this very thread because WE don't know what's going on. How can we expect clients to even know what they are supposed to receive and whether they are supposed to have it on time for tax prep?

An additional consideration is the first-year nature for some of this. Yes, there was a requirement for 2014 but the big-money sources ignored it. Do we really expect the institutional community to have this under control? (Remember the IRS doesn't go after these huge institutions with the same delirious pleasure that they come after us) These are the same parties which issue 1099-DIVs, 1099-Bs, 1098-Ts, K-1s for limited partnerships, etc. and they are almost NEVER on time especially when corrections are considered.

And this is the client's problem? Gimme a break...

[kathyc2]

So if I'm understanding this correctly, and employer who has less than 50 employees and does not offer health insurance coverage is not required to file anything (aside from the W-2 of course).

That is my understanding for year end purposes. I do believe that if an employee signs up and receives APC then there may be a letter sent to employer verifying that coverage is not offered.

[TAXNJ]

Engagement or digital

Is asking a client to sign a statement that he has insurance any different than having him complete an organizer and using that information to complete his return?

Is using a client's in lieu of a 1099INT or 1099INT any different?

I think not.

We can set our own requirements for our own due diligence.

Think the Engagement Letter listing client's and preparer's responsibilities that client signs is better than the Organizer.

With technology today, some are considering a "digital video" of client reading the engagement letter to avoid any confusion of what they said and filing the "digital video" with client's file. So much for technology.

[spanel]

So if I'm understanding this correctly, and employer who has less than 50 employees and does not offer health insurance coverage is not required to file anything (aside from the W-2 of course).

From whats posted above, even if they do offer health insurance, just a w2 issued.

Chris

[JohnH]

So if I'm understanding this correctly, and employer who has less than 50 employees and does not offer health insurance coverage is not required to file anything (aside from the W-2 of course).

[Jiggers]

Is asking a client to sign a statement that he has insurance any different than having him complete an organizer and using that information to complete his return?

Is using a client's in lieu of a 1099INT or 1099INT any different?

I think not.

We can set our own requirements for our own due diligence.

[taxea]

I can't hold up returns until the 1095B or 1095C shows up. I wouldn't be able to complete all returns by April 15.

I intend on having all clients sign the same statement I had last year. There will be a checkbox on YES or NO if the 1095 is provided. If not, there will be a statement before the signature that the client will provide it as soon as they receive it. I will keep a list of those that are missing the 1095.

I do not have any clients that will be receiving a 1095A.

If any 1095 is issued for 2015 and beyond I will require it to complete the return. If the return has to be extended...so be it. The responsibility to provide all pertinent documents belongs to the client, not me and I won't file a return I know is not complete because I don't have a document that was issued to TP and TP didn't give it to me. They are delaying their own refund. Not my problem.

[kathyc2]

What is the Purpose of the 1095 C then?

Chris

1095C is for employers with 50 or more full time equivalent employees. The employer- rather than the insurance company- is responsible for providing the forms to employees.

[spanel]

1095B comes from the insurance companies that sell policies to companies with less than 50 employees. The employer itself does not need to file the form.

A client may receive multiple 1095's if they changed insurance or covered individuals during the year.

My guess is it being the first year some of the 1095's will be incorrect. The info will also be sent to the IRS, so I'd rather head off any incorrect forms b4 the IRS does matching.

I was really surprised last year by the number of clients last year that were very confused by if they were covered or not. My fav was a very right-wing client who insisted she did not have "Obamacare" since she got a policy from the marketplace. LOL.

What is the Purpose of the 1095 C then?

Chris

[kathyc2]

Are you saying that every company must issue a 1095C? Including those with less than 50 full-time employees?

The instructions for the 1095C say all "Applicable Large Employers", thouse with 50 or more full-time employees.

Now, back to the original question. I can't hold up returns until the 1095B or 1095C shows up. I wouldn't be able to complete all returns by April 15.

I intend on having all clients sign the same statement I had last year. There will be a checkbox on YES or NO if the 1095 is provided. If not, there will be a statement before the signature that the client will provide it as soon as they receive it. I will keep a list of those that are missing the 1095.

I do not have any clients that will be receiving a 1095A.

1095B comes from the insurance companies that sell policies to companies with less than 50 employees. The employer itself does not need to file the form.

A client may receive multiple 1095's if they changed insurance or covered individuals during the year.

My guess is it being the first year some of the 1095's will be incorrect. The info will also be sent to the IRS, so I'd rather head off any incorrect forms b4 the IRS does matching.

I was really surprised last year by the number of clients last year that were very confused by if they were covered or not. My fav was a very right-wing client who insisted she did not have "Obamacare" since she got a policy from the marketplace. LOL.

[Jiggers]

1095c

I took a similar webinar this morning. the issue deadline is 1/31/2016 for the 2015 tax year and 02/28/2017 for TY 2016.
1095A is issued by Exchange/Medicare/Medicaid and other govt programs
1095B is issued by Insurance companies you need it to determine coverage
1095C is issued by employer-must issue whether or not they provide insurance

It is recommended by the seminar that you keep a copy or be sure you have a document that proves coverage. I am going to require it.

Are you saying that every company must issue a 1095C? Including those with less than 50 full-time employees?

The instructions for the 1095C say all "Applicable Large Employers", thouse with 50 or more full-time employees.

Now, back to the original question. I can't hold up returns until the 1095B or 1095C shows up. I wouldn't be able to complete all returns by April 15.

I intend on having all clients sign the same statement I had last year. There will be a checkbox on YES or NO if the 1095 is provided. If not, there will be a statement before the signature that the client will provide it as soon as they receive it. I will keep a list of those that are missing the 1095.

I do not have any clients that will be receiving a 1095A.

[David1980]

I see the 1095's as an easy way to verify insurance coverage. I do not do many of the type of returns the early filing crowd tend to have, so for me waiting for the 1095's won't be an issue. And really, it's not like the IRS has taken returns very early anyway. If they don't start processing returns til the last week of January anyway waiting for Jan 31 doesn't seem that bad.