Tag Archives: IRS

ObamaCare tax prep requirements are catching subsidy recipients unaware

The Affordable Care Act made preparing and filing tax returns even more complicated last year (I know, you’d think that wasn’t possible) because of the gymnastics involved in running health insurance subsidies and credits through the tax code.

Now we’re learning that thousands of people might lose their health insurance subsidies because they didn’t file a 2014 tax return.

As The New York Times reports,  if you got a health insurance subsidy, you have to file a tax return so the government can confirm that your income was low enough to qualify for the credit.

That means that many people who otherwise didn’t have to file tax returns had to send in a Form 1040, just because of the Obamacare subsidy.

Over the summer, the IRS sent notices to more than a million people who got insurance subsidies but hadn’t yet filed returns, warning them that they could lose all their subsidies. But since people can send in extensions and file a valid return up until October 15, that served to unnecessarily scare the shit out of a bunch of people who hadn’t done anything wrong.

I’m hoping that there’s going to be a procedure to help people who needed to file returns but either didn’t do so or filed after October 15. In the meantime–can you believe it?–the season for shopping for health care coverage is upon us again, and folks looking to get started on that process can get some basis information by going to the ObamaCare website.



Hastert and FIFA cases prove the oldest rule in the book: Follow the money!

What does Dennis Hastert’s indictment on apparently Very Very Bad Horrible Terrible Behavior (kudos to Kaili Joy Gray of Wonkette) and the FIFA bribery and kickback scandal (New York Times version here) have in common? They both in part involve people charged with trying to hide or disguise transfers of money—something that is of tremendous…Continue Reading

Is that friendly tax pro really an undercover federal agent?

Today’s nominee for Stuff You Just Cannot Make Up: The New York Times reports that officers from more than three dozen agencies have posed as business people, welfare recipients, political protesters and–yes–even tax professionals, as part of undercover investigations. “At the Internal Revenue Service, dozens of undercover agents chase suspected tax evaders worldwide, by posing…Continue Reading

“The Situation” is in a not-so-good tax situation

Did you know that “Jersey Shore” reality show personality Michael Sorrentino, aka “The Situation”, and his brother Marc, grossed almost $9 million in a variety of ventures over four years? Me neither, until I read the U.S. District Court indictment, reported inThe New York Times,charging the brothers with conspiracy and filing false tax returns. Michael…Continue Reading

IRS security puts taxpayer info at risk

The IRS won’t contact taxpayers by email, because of security concerns. When I am representing a client, auditors generally will not send me emails, for the same reason. And the Service regularly puts out notices telling taxpayers how to maintain their privacy and not get taken in by scammers claiming to be with the government.…Continue Reading

IRS abandons voters on campaign finance mess

Don’t look to the IRS for potential relief from a tsunami of political advertising during the 2014 off-year elections. The Service announced in late May that it is pulling back proposed regulations on tax-exempt groups. That means that everyone from the billionaire Koch brothers to tree-hugging lefties will be able to fund ad campaigns through…Continue Reading