On his Inauguration Day, President Trump issued an Executive Order which caused the IRS to not reject tax returns due to lack of health coverage indication on the 1040.

While the AICPA has no position on this issue, its VP of Taxation Edward Karl uses the AICPA’s tax ethical standards to determine that compliance is still critical. The IRS’ response is very clear “…legislative provisions of the ACA law are still in force until changed by Congress, and taxpayers remain required to follow the law and pay what they owe.

Karl suggests you explain the IRS’ response to your clients, but then follow existing law such as minimum essential coverage, an exemption or reporting the payment. Otherwise, you cannot sign the return.

In other news...

Rev. Procedure 2017-25 formally establishes the Small Business/Self Employed Fast Track Settlement program (SB/SE FTS) to provide an expedited format for resolving disputes with SB/SE taxpayers.

When the parties agree that SB/SE FTS is appropriate, the taxpayer and the examiner must jointly complete and sign Form 14017, Application for Fast Track Settlement, and prepare the Application Package, which must include the Form 14017, properly documented work papers supporting the examiner’s position, and the taxpayer’s written response.

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