Sullivan & Company - Certified Public Accountants 4709 Montgomery Lane #201 - Bethesda, MD, 20814 Phone: 301-657-8080





Financial Services by Sullivan & Company

Paul Sullivan, CPA

Financial services are now offered at Sullivan & Co., CPAs.  The story WHY:


You may wonder why your accounting firm wants you to invest with them. Years ago, CPAs were not allowed to venture into the investment world, but it always bothered us to see how poorly our clients were treated at their broker. It is not that the broker was not nice or attentive; it was the quality of the investments and, oftentimes, the lack of understanding for how the investments were going to affect the client in the future.


The amount of commissions and fees were oftentimes much larger than the client realized. Principles taught in universities were ignored by greedy advisors. Some forward thinking CPAs worked hard to get the accounting industry to see that we could, at the least, counsel our clients so that their investing experience was successful.


Our function is to work with you in all areas of your financial life. We prepare your tax returns and financial statements, of course, but there's a lot more decisions you make that we should be involved in. These include: succession planning for business owners such as HOW TO:

1) Sell your business

2) Retire comfortably

3) Handle your finances now that you are divorced or widowed

4) Provide for loved ones if you die

5) Pay for the education of your children

6) Determine if a trust is right for you

7) Minimize estate taxes


Worse than hearing that the IRS is going to audit is the call from a client who has plunged into an investment, whether stocks, bonds or another home without consulting us first.


Sometimes these decisions have unfortunate results and are difficult or impossible to undo. So, in response to this need, your CPA firm has well trained accountants and financial services professionals to help you navigate the financial world..

For a free review of your investments, give me a call at 301 657-8080 X 102.




Paul Sullivan, CPA

Sullivan & Company


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This Month's Feature Articles

- Tax Changes for 2015: A Checklist
- 10 Tax Breaks Reauthorized for Tax Year 2014
- Ensuring Financial Success for Your Business


Tax Tips

- Tax Brackets, Deductions, and Exemptions for 2015
- IRS Announces 2015 Standard Mileage Rates
- 5 Tips to Know about the Saver's Credit






Your Taxes and the Affordable Care Act


Starting with this year's filing season, taxpayers must report certain information related to health care coverage on their 2014 tax return when they file this April.

In addition, taxpayers must provide proof of health insurance coverage or that they have received an exemption.

With that in mind, let's take a look at how the Affordable Care Act might affect your tax situation, and based on your type of coverage, which new tax forms you might be receiving.

Tip: For additional information about IRS tax forms related to health care insurance, please see the article, Health Care Law: Changes to IRS Tax Forms.


The biggest change for most taxpayers is found on Line 61 of Form 1040, where individuals must either check a box to show they had health insurance or pay a penalty. In general, the penalty applies to individuals who did not have health insurance for more than three months in 2014.

In 2014, the penalty is the greater of one percent of modified adjusted gross income or $95 per adult ($47.50 per child under age 18, up to a maximum of $285 per family). While the IRS cannot issue a lien against you in order to make you pay the penalty, they are allowed to withhold the money from your refund.

Certain persons may qualify for an exemption from the penalty such as those who do not need to file a tax return ($10,150 for individuals, $13,050 for heads of household, and $20,300 for a married couples filing jointly). Other exceptions (there are eight in total) include being a member of a federally recognized tribe or qualifying for a hardship exemption if you filed for bankruptcy in the last 6 months or had medical expenses you couldn't pay in the last 24 months that resulted in substantial debt.

Caution: Taxpayers who believe they qualify for an exemption must apply and receive an exemption certificate from the Marketplace.

There's an additional twist for the approximately eight million people who purchased health insurance through the Healthcare Marketplace ("the Exchanges"), many of whom received subsidies that were paid to insurance companies and applied directly to their insurance premiums.

What taxpayers might not realize is that in many cases these subsidies were based on household size and income for 2012. Remember, the enrollment period began October 1, 2013 before taxpayers had filed their 2013 tax returns.

If income or household size changed in 2014 and the IRS was not notified of these updates, taxpayers may be liable for paying additional subsidy monies or conversely, receive refunds for amounts overpaid. In other words, if you received a bonus in 2014 (change in household income), it could mean that you owe the government money.



Enrollment through an Employer, Private Insurance, Medicaid or Medicare

New Tax Forms: 1095-B, 1095-C

1095-B. If your healthcare coverage is provided by private insurers or self-funded plans, you should receive Form 1095-B; however, because tax year 2014 is a transition year, these forms are not required when filing your 2014 tax return.

1095-C. If your healthcare coverage is provided by your employer, you should receive Form 1095-C; however, because tax year 2014 is a transition year, these forms are not required when filing your 2014 tax return.

Enrollment through the Healthcare Marketplace

New Tax Forms: 1095-A, Form 8962

Form 1095-A. If you purchased health insurance from the Marketplace you will receive Form 1095-A showing details of your coverage such as the effective date, amount of your premium payment, and any advanced premium credit you received.

Form 8962. The amount of any advanced premium credit you received in 2014 is reported on Form 8962. This form is also used to figure out the actual premium credit as well.

No Health Insurance

If you DO qualify for an exemption: Taxpayers must apply for the exemption from the Marketplace and if approved, will receive an exemption certificate number, which must be reported on Form 8965.

If you DO NOT qualify for an exemption: Taxpayers that do not qualify for an exemption and are uninsured are required to pay a penalty (see above) when filing their tax return. Form 8965 is used to calculate the penalty.

Don't hesitate to call or email with any questions about the ACA and your taxes.



    Financial Services at Sullivan & Company, CPAs

Paul Sullivan leads our Financial Services Division and is here to help you navigate your financial future. As an Investment Advisor Representative, he is able to provide an independent opinion on the investments you already own or are considering buying.


We can structure a portfolio based on your risk tolerance or we can help you decide how to invest in your company 401(k) plan. We work with each client to identify their concerns and to provide solutions according to their situation.

Paul is also experienced in company retirement plans. If you own a business that does not have a plan; we can discuss your options and set up a plan that fits your company.


If your business already has a plan; we offer a free evaluation of the plan to ensure that it is up to date and working well for you and your employees.

Our goal is to provide personal, unbiased and independent advice to help you make well-informed decisions about your financial life and investments.

Contact Paul Sullivan or Jordana Para to set up a free initial consultation (301) 657-8080.

And as always if you have any questions about accounting or investments and how they effect you or your business, please give us a call. We can help guide you in the right direction.



Remember you can call our offices if you have any questions about these or any other accounting, tax, financial planning or insurance related issues, at 301-657-8080. 


Regards, Paul Sullivan, CPA

President, Sullivan & Company





Sullivan & Company, CPAs | 4709 Montgomery Lane | Bethesda, MD 20814 | email: | Connect With Me on Linkedin

Direct: 240-316-3531 | Main no.: 301-657-8080 Ext 102 | Fax: 301-657-9055