Tax and Finance Management

Congress Makes R&D Tax Credit Permanent

OMA Connections Partner, Tax Credit Group, reported that after more than three decades of year-to-year uncertainty, Congress has made the R&D tax credit permanent as the result of passage of the Protecting Americans from Tax Hikes (PATH) Act of 2015.

The congressional deal also brings back the concept of an “AMT turnoff” which allows small businesses to take the R&D tax credit against their alternative minimum tax liability.

And …. Gives this Sack of Business Tax “Gifts”

OMA Connections Partner, Clark Schaefer Hackett, breaks down several provisions in particular of the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) that may produce significant tax savings for businesses in 2015 and beyond.  President Obama signed the act into law on December 18, 2015.

Many popular tax breaks — including some highly valued by businesses — become permanent, while others are extended through 2016 or 2019.

OMA members who manufacture medical devices will appreciate the halt of the 2.3% excise tax on the sale of medical devices in 2016 and 2017.

2015 ACA Reporting Deadlines Extended

And, OMA Connections Partner, Clark, Schaefer, Hackett (CSH), reports that, on December 28, the IRS issued a notice that extends the 2015 due dates for information that insurers and self-insured employers are required to report to comply with the Affordable Care Act (ACA).

Specifically, the notice provided the following extensions:
• The due date for providing the 2015 forms 1095-B and 1095-C to full-time employees has been extended from January 31, 2016, until March 31, 2016.
• The due date for filing the 2015 forms 1094-B, 1095-B, 1094-C, and 1095-C with the IRS has been extended from February 29, 2016, to May 31, 2016 if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

Here’s a webinar-on-demand from CSH about ACA reporting requirements.

The IRS has posted eight facts about the new ACA information statements that will be issued for insurance offer and coverage by employers and health care coverage providers. 

Blank Forms W-2, W-3 & 1099 No Longer at Taxpayer Assistance Centers

The IRS says:  Don’t wait until the last minute to get blank Forms W-2, W-3 or 1099.  The demand for paper tax products is declining because of an increase in e-filing and the availability of products online. Therefore, the IRS will no longer stock Forms W-2, W-3 and 1099 in Taxpayer Assistance Centers.  The forms, which are used by small business owners, can be ordered online or by telephone and mailed directly to the taxpayer’s home or business address.

To order online, go to the IRS’ Online Ordering for Information Returns and Employer Returns website.  To order by phone, call the IRS at: 1-800-829-3676.

The Social Security Administration also offers an online option to create and file electronic Forms W-2. File Forms W-2/W-2c and W-3/W-3c electronically by visiting the Social Security Administration’s Employer Reporting Instructions and Information website to create and file electronic fill-in versions of Forms W-2 and W-3.