12/31/2017 Extender Package on Senate Floor as of 2/28/2019

  • The promised extender legislation has been submitted for legislative action. This is a good year to extend (or amend) your tax return if you are affected. The following provisions that expired at the end of 2017 would be extended through 2019:
  • The nonbusiness energy property credit;
  • The qualified fuel cell motor vehicle credit;
  • The alternative fuel refueling property credit;
  • The 2-wheeled plug-in electric vehicle credit; The following provisions that expired at the end of 2018 would be extended through 2019:
    The temporary reduction in medical expense deduction floor;
    The extension of oil spill liability trust fund rate; and>
    The black lung liability trust fund excise tax.The second generation biofuel producer credit;
  • The biodiesel and renewable diesel incentives;
  • The credit for electricity produced from certain renewable resources;
  • The production credit for Indian coal facilities; – The railroad track maintenance credit;
  • The energy efficient homes credit;
  • The classification of certain race horses as 3-year property;
  • The special allowance for second generation biofuel plant property;
  • The energy efficient commercial buildings deduction; – The election to expense advanced mine safety equipment;
  • The extension of the special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities;
  • The extension and clarification of excise tax credits relating to alternative fuels;
  • The 7-year recovery period for motorsports entertainment complexes;
  • The accelerated depreciation for business property on Indian reservation;
  • The expensing rules for certain productions;
  • The Indian employment credit;
  • The mine rescue team training credit;
  • The exclusion from gross income of discharge of qualified principal residence indebtedness;
  • The treatment of mortgage insurance premiums as qualified residence interest;
  • The deduction of qualified tuition and related expenses;
  • The extension of empowerment zone tax incentives; and
  • The American Samoa economic development credit.

The following provisions that expired at the end of 2018 would be extended through 2019:

  • The temporary reduction in medical expense deduction floor;
  • The extension of oil spill liability trust fund rate; and;
  • The black lung liability trust fund excise tax.

OTHER:

The disaster tax relief provisions in the bill include special rules allowing access to retirement funds, an employee retention credit, suspension of limits on deductions for certain charitable contributions liberal rules for deductions for disaster-related personal casualty losses, and special rules for measurement of earned income for purposes ofqualifying for tax credits.


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The Battle for Sales Tax Nexus–Part 1

You may have found Amazon affliates billing sales tax on your purchases or you may be scratching your head at the many screens a vendor must fill in to use the Amazon affiliate program. What has changed? The dynamics of the markeplace has changed. Sales tax and use tax account for more than 30% of statewide gross revenues says one interstate sales tax reporting service. There have been recent landmark test cases, and the states are auditing more aggressively to further develop test legal precident since the Federal congress folks did not act on proposed standardization of sales tax.

I was taught that Colorado has already hired over 100 sales tax auditors and Wisconsin has budgeted 111 for 2016 sales tax auditing. Most states and localities have a handful of auditors and dream of change. It is lucrative to challenge end user interstate purchasers for use tax and then double collect from the out-of-state vendor who had incurred nexus, i.e. the responsibility to collect the tax originally. Business owners will not be challenged until 3 years of past liabilities, interest, and penalties can be accrued efficiently by auditors.

As an affiliate seller on Amazon, you may be billed by one or more of the 1300 sales tax districts where your inventory was temporarily stored and nexus sales tax reporting responsibilities assign the tax liability directly to you. As an informed seller or buyer, it is your responsibility to ask questions and to research nexus.

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Did you have both Marketplace and Employer Insurance in 2015?

If you had health coverage under both employer and marketplace, you may be in the late April returns extended until October, 2015 as there will not be sufficient information available to file an error free return. Hopefully your employer will distribute the required 1095C early; however, employee notifications have also been extended and may not arrive in January or February or even March or even April or even May.

The premise for extending employer filings with the IRS as well as with employees is that employers would have more time to calculate and revise affordability reporting so there are reduced revisions and matching errors occur upon individual tax return efile. I would expect this will result in delayed refunds for folks having any gaps or marketplace coverage.

Please note that due to the December 18th legislation, efile for individuals may be delayed again this year

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ACA Penalty Exemption Process

I know that folks are struggling with the ACA penalty exemption process. Helping folks find how their exemption can be presented has been addressed on the following link:

Visit https://www.healthcare.gov/exemptions-tool/#/

If you have used this site or any of the 800 telephone resources, I would like to publish comments. Please fill in the contact form so we can discuss the comment you would like to see here.

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