In Case You Missed It: Tax News and Views Recap

We've published a lot of important information recently. The following is a short review of various tax information items, all available on EideBailly.com. To read the full articles, click the Learn More link after each summary.

Funding Patient-Centered Outcomes Research

The Patient-Centered Outcomes Research Trust Fund (the PCORTrust) carries out the provisions of the 2010 Patient Protection and Affordable Care Act relating to comparative clinical research, which helps health care providers evaluate the effectiveness and risks of medical treatments and procedures. To fund the PCORTrust, a new fee is imposed on a "specified health insurance policy" or an "applicable self-insured health plan." The first funding of the PCORTrust will happen shortly, will you be affected? Learn More

IRS Calculation of Interest Error

For taxpayers who received an IRS tax due notice mailed July 1-12, the IRS has discovered that tax notices sent out via Form CP2000 (noted in the top right hand corner of the notice) during the weeks of July 1 and July 8 contain an error in the calculation of interest. The interest calculated is lower than it should be. The IRS has corrected the error for future mailings, but those affected can expect another IRS explanation letter later in July. Learn More

Health Care Reform Toolkit for Employers

As health care reform becomes reality, it is important to keep abreast of new developments and changes in order to comply with federal regulations. This may seem like a daunting task given the extensive requirements. To help, Eide Bailly has created a toolkit to provide you with information on the regulations, deadlines and links to forms that need to be completed. Learn More

New MN Gift and Estate Tax Law

Minnesota legislation has recently created a gift tax affecting both residents and non-residents. There will be a 10 percent gift tax imposed on taxable gifts made on or after July 1, 2013. While there is a $1 million exemption available (equivalent to $100,000 tax credit), tax will be imposed on gifts of Minnesota real property and Minnesota personal property regardless of whether the donor is a Minnesota resident. Learn More

FBAR Filing Method to Change July 1, 2013

For those who file a Foreign Bank and Financial Accounts (FBAR) report, the filing method will be changing from paper to electronic filing, effective July 1, 2013. This electronic filing was mandated in 2011, but was delayed until after June 30, 2013. Learn More

Save Taxes with Agricultural Wages Paid In Commodities

Agricultural wages paid in commodities can be a very useful tax savings tool in paying farm wages to your spouse, children over age 18, or any other employees who are subject to FICA tax withholding rules. The main advantage is that the paying of wages in commodities is exempt from social security and Medicare tax for both the employee and employer. Learn More

New Law Permits Transfer to Roth Accounts

While the American Taxpayer Relief Act of 2012 effectively averted the looming "Fiscal Cliff," many important tax changes were included in this legislation. Under the new law, individuals who participate in a qualified retirement plan like a 401(k), 403(b), or 457(b) now will be allowed to transfer or "convert" their pre-tax funds into a ROTH-style account without penalties or many of the restrictions that were previously in place. Learn More

Understand Your Section 529 Plan Before Making Withdrawals

As the next college year approaches, there are many aspects to consider regarding withdrawals from Section 529, Qualified Tuition Programs. Section 529 accounts are tax deferred during the accumulation stage, as contributions to the account are made. Withdrawals/distributions from a Section 529 account are tax free, if used to pay or reimburse out-of-pocket, qualified higher education costs for the designated beneficiary/student of the specific Section 529 Plan. Learn More

Health Care Reform Employer Deadline Extended to Jan. 1, 2015

Enforcement of the Affordable Care Act employer mandate (which requires employers with more than 50 full-time equivalent employees to provide affordable health insurance coverage or pay defined penalties) will be delayed from its original deadline of Jan. 1, 2014 to Jan. 1, 2015. The 12-month delay also applies to reporting requirements for employers to provide information on health insurance coverage, who obtains the coverage and what is offered to employees. Learn More