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Offers in Compromise / ACA

IRS Raises Fees for Installment Agreements and Offers in Compromise

The Internal Revenue Service releasedfinal rules (T.D. 9647) that increase user fees charged for processing installment agreements and offers in compromise.

Under the final regulations, released November 29, the fee for entering into an installment agreement will increase from $105 to $120 and the fee for restructering or reinstating an installment agreement will increase from $45 to $50.  The fee for processing an offer in compromise will increase from $150 to $186, the IRS said.

The final rules apply to installment agreements entered into, restructured or reinstated and offers in compromise processed on or after January 1, 2014.

Several related fees will not be changed, according to the final rules.  The fee for a direct debit installment will remain at $52 and low-income taxpayers will continue to pay $43 for a new installment agreement.  Compromise offers based on doubt as to liability and offers from low-income taxpayers will to be exempt from a user fee.


IRS Implementation of the Affordable Care Act (ACA)

According to the IRS, implementing the ACA will require much information reporting.  For example:

  • Because the IRS will have to provide information to the state health insurance exchanges, additional information, such as household income and size, may have to be reported on Form 1040.
  • Employers will be responsible for reporting the insurance coverage they provide to employees so that the IRS can determine whether the individuals are eligible for a premium tax credit.
  • Employees will receive many notices from employers informing them about options for coverage, the premium tax credit, etc.

2014 Individual Mandate

  • January 2014 individual mandates begin, a non-exempt individual must maintain minimum essential coverage or make a shared responsibility payment on their federal income tax return.
  • Premium tax credit, beginning 2014 individuals who obtained health insurance coverage through an Affordable Insurance Exchange may qualify for a refundable premium tax credit.  The credit will be given to qualified individuals who are not eligible for affordable coverage and whose household income fall within specified thresholds, based on the federal poverty level.

2014 Employer Mandate

  • An applicable large employer is subject to shared responsibility payments beginning January 1, 2014, if any full-time employee of the organization is certified to receive an applicable premium tax credit or cost-sharing reduction.

(This may apply to you please contact our office for further details, 770-461-5518.)

2013 Making Sense

Maximum Dividend and Long-term Capital Gain tax rate goes to 20%.

The tax rates on ordinary dividends and long-term capitol gains remain unchanged for 2013 (0% if you are in the 10 or 15% income tax bracket; 15% for every one else) provided your income is below $400,000 single, $450,000 married filing joint.  For those with incomes above this the rate goes to 20% (a 33.3% increase),  Planning to match losses against gains will become more important in 2013.