2015 health insurance requirement

[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.

[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.

[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...

[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]

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]

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