Lawmakers Add Tax Measures to Trade Package
+ 2015 Live Q&A Call Schedule +
June 2015 Tax Compliance Calendar
provisions are often included as revenue raisers in non-tax
bills and this year is no exception.
A massive trade package making
its way through Congress contains a number of tax measures,
impacting both individuals and businesses. At the same time,
some stand-alone tax bills are moving forward in the House and
Under current law, a U.S. citizen or resident living abroad
may be eligible to elect to exclude from U.S. taxable income
certain foreign earned income and foreign housing costs. If
enacted, the trade package would provide that taxpayers who
elect to exclude from gross income for a tax year any amount
of foreign earned income or foreign housing costs would not be
able to claim the refundable portion of the child tax credit
for the tax year. The change in treatment would be effective
for tax years beginning after December 31, 2014.
Lawmakers are also considering a revision to the rules for
information reporting on unreported and underreported
financial accounts. Generally, current provisions require that
every person who makes a payment of reportable interest of $10
or more to any other person during any calendar year must
report the aggregate amount of the payment and information
identifying the recipient on an information return (Form
1099-INT) to the IRS. The trade package would eliminate the
minimum interest threshold of $10 and apply information
reporting requirements and penalties for banks and other
persons that hold non-interest bearing deposits. The change
would apply to returns filed after December 31, 2015.
The Health Coverage Tax Credit (unrelated to the Code Sec. 36B
premium assistance tax credit) is intended to help
trade-displaced workers to offset the cost of health
insurance. The U.S. Department of Labor (DOL) generally
certifies if an individual is eligible for the HCTC.
The HCTC was created as a temporary measure but has frequently
been renewed, typically in a tax extenders package. Last year,
however, the HCTC was not included in the Tax Increase
Prevention Act of 2014 (TIPA). The pending trade package would
extend the HCTC through 2019 for qualified individuals and
their families. The package also makes some technical changes
to the credit and clarifies that an individual who claims the
HCTC cannot also claim the code Sec. 36B credit.
The trade package would deny a U.S. passport (or renewal of a
passport) to an individual who has a seriously delinquent tax
debt. The U.S. State Department could also revoke passports
previously issued to individuals with seriously delinquent tax
debts. Generally, a "seriously delinquent tax debt" is any
outstanding federal tax debt in excess of $50,000, including
interest and penalties, for which a notice of lien or a notice
of levy has been filed. However, if the individual has entered
into an installment agreement or an offer in compromise, or
collection has been suspended, the individual would be exempt
from the passport rules. The proposal, if enacted, would take
effect on January 1, 2016.
month in USA Today I was quoted in 2 articles on tax
topics & if you missed it you can download the articles
9 Commonly Overlooked
Tax Breaks by Jeff Reeves - Special to USA Today (click
here to download)
9 Tax Tips For The Self
Employed by Jeff Reeves - Special to USA Today (click
here to download)
The trade package also includes a corporate estimated tax
shift between fiscal years (FY) 2020 and 2021. For
corporations with at least $1 billion in assets, the package
would increase the portion of corporate estimated payments due
from July through September in 2020, with a subsequent
reduction for the increase.
Research tax credit. Just before their Memorial Day recess,
the House approved the American Research and Competitiveness
Act of 2015 (H.R. 880). The bill would make permanent the
research tax credit, which expired after 2014.
Highway funding. Lawmakers also approved a stop-gap
highway and transportation funding bill. The short-term bill
does not include any additional revenue raisers but congress
could add some when it debates a long-term highway bill. Some
lawmakers have called for an increase in the federal gasoline
tax. A bipartisan proposal in the Senate would use revenues
from repatriated foreign earnings to pay for highway and
Public safety officers. In May, Congress approved the
Don't Tax Our Fallen Public Safety Heroes Bill (HR 606), which
President Obama signed into law. The bill clarifies federal
law to ensure that both federal and state benefits for fallen
public safety officers are treated the same in the Tax Code.
Under the legislation, neither would be subject to federal
Medical device excise tax. In June, the House is likely
to take up legislation to repeal the medical device excise
tax. The Patient Protection and Affordable Care Act (PPACA)
created the excise tax, which is generally imposed on
manufacturers and distributers of certain medical devices.
Please contact our office at 714-619-0667 if you have any
questions about pending federal tax legislation.
Below is our 2015 schedule for
my live Q&A calls. I have 2 calls needing topics
so if you have a suggestion please email me. If
you have not already done so please
register and you'll receive email reminders when the
Q&A Webinar Schedule
here to Register - all calls at 6:00 pm PT)
April 28, 2015 -
Maximizing Social Security
June 30, 2015 -
Wage & Hour - Sick Day Pay & Hot
Topics | Anita York
July 28, 2015 -
Most Common Operational Issues
Currently Encountered in Dental Practices
Aug 25, 2015 -
Sept 29, 2015 -
What's Your Practice Worth &
Getting Ready for Sale
Oct 27, 2015 -
Nov 17, 2015 -
Year End Tax Planning 2015
June 2015 Tax Compliance Calendar
an individual or business, it is your responsibility to be
aware of and to meet your tax filing/reporting deadlines.
This calendar summarizes important federal tax reporting and
filing data for individuals, businesses and other taxpayers
for the month of June 2015.
June 2 - Retirement plans. Deadline for sponsors and
administrators of retirement plans not covered by Title I of
ERISA to file their Form 5500, Annual Return/Report of
Employee Benefit Plan, or 5500-EZ, Annual Return of
One-Participant (Owners and Their Spouses) Retirement Plan,
returns and qualify for penalty relief under the IRS's pilot
program. The program was announced last year in Rev. Proc.
June 3 - Employers. Semi-weekly depositors must deposit
employment taxes for payroll dates May 2729.
June 5 - Employers. Semi-weekly depositors must deposit
employment taxes for payroll dates May 30June 2.
June 10 - Employers. Semi-weekly depositors must
deposit employment taxes for payroll dates June 3June 5.
Employees who work for tips. Employees who received $20 or
more in tips during May must report them to their employer
using Form 4070.
June 12 - Employers. Semi-weekly depositors must
deposit employment taxes for payroll date June 69.
June 15 - Individuals. Individuals, partnerships, pass
through entities and corporations make the second installment
of 2015 estimated quarterly tax payments. Individuals. U.S.
citizens or resident aliens living and working (or on military
duty) outside the United States and Puerto Rico must file Form
1040 and pay any tax, interest, and penalties due.
June 17 - Employers. Semi-weekly depositors must
deposit employment taxes for payroll date June 1012.
June 19 - Employers. Semi-weekly depositors must
deposit employment taxes for payroll dates June 1316.
June 24 - Employers. Semi-weekly depositors must
deposit employment taxes for payroll dates June 1719.
June 26 - Employers. Semi-weekly depositors must
deposit employment taxes for payroll dates June 2023.
June 30 - Foreign Assets. Report any financial interest
in, or signature authority over, a foreign financial account
that exceeded $10,000 at any time during the 2014 calendar
year on Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), (formerly Form TD F 90-22.1).
July 1 - Employers. Semi-weekly depositors must deposit
employment taxes for payroll dates June 2426.
July 6 - Employers. Semi-weekly depositors must deposit
employment taxes for payroll dates June 2730.
To read this & my other articles online go to
and click on the Newsletter section.
always you can call me at 714-619-0667 if you have any
questions about investing, retirement or any other tax &
accounting related issues.
Regards, Monica Rebella, CPA/IAR
President, Rebella Accountancy