IRS complies with President Trump’s Executive Order -- will not reject tax returns without health care disclosure

02-20-2017Tax Information

After President Donald Trump issued an Executive Order, the IRS announced that it will not reject tax returns just because a taxpayer has not indicated on the return whether the taxpayer had health insurance, was exempt, or made a shared-responsibility payment under Sec. 5000A of the Patient Protection and Affordable Care Act (PPACA).

  • The PPACA requires taxpayers who do not maintain minimum essential health coverage for each month of the year and who do not qualify for an exemption to pay a shared-responsibility payment with the filing of their Form 1040, U.S. Individual Income Tax Return.
  • Although the health insurance information requirement has been in effect for a few years, the IRS accepted returns that did not contain the information

Myths on Trust Taxation

02-11-2017Tax Information

I periodically get inquiries from individuals who think they can avoid income taxes because they have a trust.  Trusts are often very good tools to protect your assets; but not always a good tool for simple tax planning strategies.  Trusts generally have much lower deductions, compressed marginal tax rates, and a much lower threshold for the net investment income tax.  Thus, a trust may incur higher income taxes than an individual may pay.


Some Tax Forms Arizona Department of Revenue are Incorrect

01-31-2017Tax Information

The Arizona Department of Revenue announced on January 30, 2017 that it sent out some incorrect 1099-G forms for 2015 taxpayers that received refunds.

The erroneous forms included information from the 2014 tax year, and did not include the correct information from the 2015 tax year.

You can still file your 2016 income tax return – Please use your actual 2015 tax return if your 1099-G document is different.

Proposed Revisions to Tuition Tax Credits and Deductions

08-03-2016Tax Information

The Internal Revenue Service has proposed revisions to tuition tax credits and deductions for individual tax payers.  The changes are meant to be in alignment with the Protecting Americans from Tax Hikes (PATH).

Key things to know:

  • No deduction or credit will be allowed unless there is a 1098-T, Tuition Statement, received from the eligible educational institution.
  • An exception will be made for items not included on the form (e.g. required course materials that qualify for the American Opportunity Tax Credit)
  • Form 0198-T should be received by January 31 of the following year
  • Reporting will be more specific for qualified tuition and related expenses paid in one year that relate to the academic period beginning in the first three months of the next calendar year.  The prepaid amount would be explicitly stated

Maximize Your HSA in 2016

02-16-2016Tax Information

With individual income tax season under way, I am seeing a number of clients with a high-deductible health insurance plan and a Health Savings Account (HSA).  Here are some ways to make the most of your money this year.
In 2016, those with individual high-deductible plans can deposit $3,350 into an HSA, while those with a family plan can contribute a maximum of $6,750. In either case, an extra $1,000 catch-up contribution is allowed for those age 55 or older.

  • Open and fund your HSA today.  High-deductible health plans can require policyholders to pay thousands out of pocket before insurance coverage kicks in. To soften the blow, the federal government allows those with qualified plans to open HSAs and pay their out-of-pocket expenses with tax-free money.  However, the tax savings only applies to expenses paid after the HSA was opened. You don’t need to fully fund it immediately -- or ever.  Pay into it what you can.
  • Your HSA can be an investment tool.  Some HSA accounts work as simple savings accounts and offer a minimal interest. Others let you invest money in mutual funds, just as you would in a 401(k) or IRA. 

IRS E-file system temporarily shut down

02-04-2016Tax Information

The Internal Revenue Service reported it suffered a "hardware failure" on Wednesday afternoon, which left many of its tax processing systems unavailable Wednesday night, the agency announced in a statement.

The agency stopped accepting electronically filed tax returns because of the problem. The outage could affect refunds, but the agency said it doesn't anticipate "major disruptions."

The IRS is still assessing the scope of the outage and indicates nine out of 10 taxpayers will receive their refunds within 21 days.  The website remains available, but "Where's My Refund" and other services are not working.



10-28-2015Tax Information

Mark your calendars for Saturday, November 14, 2015 to attend FINANCIAL FEST –presented by Money Radio (KFNN 1510AM & 99.3FM) – a day of free seminars specialized to grow your wealth and help you retire comfortably.

Boudreau Consulting’s Kevin Boudreau will be presenting TAX BACKETOLOGY -- a review different ways of minimizing your personal & business income taxes --regardless of your tax bracket.

Boudreau Consulting is the only CPA firm presenting at this event. You will have a chance to meet the Boudreau Consulting tax professionals that can help you save money. TAX BRACKETOLOGY is scheduled to start at 11 am.


Your Health Insurance Company May Ask for Your Social Security Number

08-27-2015Tax Information

On the surface, this may seem like another scam, but your health insurance company may request that you provide them with the social security numbers for you, your spouse and your children covered by your policy.

This is because the Affordable Care Act requires every provider of minimal essential coverage to report that coverage by filing an information return with the IRS and furnishing a statement to covered individuals. The information is used by the IRS to administer – and individuals to show compliance with – the health care law.

Health coverage providers will file an information return, Form 1095-B, Health Coverage, with the IRS and will furnish statements to you in 2016, to report coverage information from calendar year 2015.


Nine Steps if you receive a Notice from the IRS

07-13-2015Tax Information

Opening the mail and seeing a notice from the Internal Revenue Service generally raises our blood pressure.  Here are some tips of how to address and resolve any issues when you receive a notice.

  1. Watch out for Scams - The IRS only will initially notify you by mail – not phone or email.  The IRS does not contact people via email, text or social media. 
  2. Don’t Ignore It. You can respond to most IRS notices quickly and easily. It is important that you reply right away.
  3. Focus on the Issue. IRS notices usually deal with a specific issue about your tax return or tax account.  Understand the reason for the notice.

2015 State of the Union Tax Proposals

01-21-2015Tax Information

President Barack Obama announced that he will propose tax increases for higher-income individuals and provide tax relief for middle-class taxpayers in last night’s State of the Union address. He wants to simplify the Internal Revenue Code, eliminating loopholes, and help “middle class families get ahead and grow the economy.”

While it remains to be seen when and how anything may be implemented, the president’s wish list includes:


Charitable Deductions & Travel

07-16-2014Tax Information

Do you donate your services to charity and travel as part of the service? Some travel expenses may be deductible for income tax purposes.


Seven Tips on Deducting Charitable Contributions

03-24-2014Tax Information

1. You must donate to a qualified charity if you want to deduct the gift. You can’t deduct gifts to individuals, political organizations or candidates.

2. In order for you to deduct your contributions, you must file Form 1040 and itemize deductions.