The IRS has issued proposed regulations implementing the health insurance premium tax credit created by the Patient Protection and Affordable Care Act of 2010. The guidance is significant to businesses because, under the act’s shared responsibility provisions, also known as “play or pay,” beginning in 2014 certain employers may be subject to penalties if just one employee receives the credit. This alert details the guidance, explaining how employers can determine whether their health plans satisfy the requirements to disqualify employees for the tax credit, which, in turn, will allow them to avoid play-or-pay penalties.
On Friday, March 1, President Obama signed an order required by law to set into motion the automatic federal government spending cuts known as the “sequester.” The cuts, affecting both defense and nondefense programs, could have sweeping effects across a variety of government services, although several key programs are exempt. This article examines how the sequester came into effect and reviews its defense and nondefense cuts.
The IRS has modified the Voluntary Classification Settlement Program (VCSP) to, among other things, allow employers under IRS audit (other than an employment tax audit) to participate. It also temporarily further expands eligibility — through June 30, 2013. But while the expansions may seem like a win-win option for employers, participating isn’t without risk. This article reviews VCSP eligibility, processes and terms, and details the recent changes.
The Financial Accounting Standards Board (FASB) recently issued guidance clarifying which types of transactions will be subject to enhanced disclosure requirements for companies that “offset” assets and liabilities on their financial statements. The guidance, found in Accounting Standards Update (ASU) 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, narrows the scope of offsets that will require balance sheet disclosures. This article provides an overview of offsetting, the initial disclosure requirements and the revised requirements.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) announced the fourth in a series of deadline extensions for certain required filings in relation to foreign assets. FinCEN Notice 2012-2 extends the filing date for some filers of Form TD F 90-22.1, “Report of Foreign Bank and Financial Accounts (FBAR),” from June 30, 2013, to June 30, 2014. This article reviews FBAR reporting requirements, who is exempt from filing an FBAR, and who is affected by the extended deadline.