income tax

Tax Cutting Strategies For The Home Stretch

With the end of the tax year fast approaching, taxpayers are heading into the home stretch in the area of tax planning. Although there is less than a month left in 2018, there may well be some last minute opportunities available for saving valuable tax dollars. Because of the new higher standard deduction, several of these possibilities involve bundling deductions in order to make use of the tax advantage provided by itemizing. Others include making use of various tax sheltered accounts and managing capital gains. No matter what tax saving measures are employed, it is almost certain that ignoring such opportunities will result in paying a higher tax bill than would otherwise be the case.

The following are some tax saving measures that might be used to help to save tax dollars in the last few weeks of 2018:

·        Maximize the Tax Benefits of Realizing Capital Gains and Losses

Since the IRS allows taxpayers to deduct up to $3000 of short-term capital losses against ordinary income, the end of the year is a good time to examine investment accounts to see if there are any losers that need to be dumped. In addition, taxpayers should look at potential capital losses with an eye toward canceling out capital gains that have been realized during the year. As always timing is important in making capital gains decisions. Whenever possible, net capital gains should be realized in years of lower income and net capital losses in years of higher income, a consideration that becomes especially important as the calendar year comes to a close.

·        Utilize the Full Tax Benefits Provided by Retirement Accounts

IRA contributions, which are available to anyone who has earned income for the tax year in question, are tax deductible at both the federal and the state levels. This being the case, valuable tax dollars can be saved by maximizing the annual IRA contribution limit of $5,500. The same is true for 401(k) contributions which have an annual contribution limit of $18,500 with a limit of $55,000 for contributions from all sources. Since contributions to 401(k) plans are made with pretax dollars, they provide a valuable tax break by reducing a contributing taxpayer’s annual income by the exact amount of the contribution. Contributions to both traditional and Roth IRAs can be made up until the 2019 April 15th filing deadline while 401(k) contributions must normally be made on or before December 31st.

·        Consider Bundling Tax Deductions

While the increase of the standard deduction from $6,350 in 2017 to $12,000 in 2018 provides a tax break to those who claim it, the increase makes it harder to achieve a tax advantage by itemizing deductions. As a result, many taxpayers are looking at the possibility of bunching into a single year tax deductions that would normally be spread over several years. Such deductions include such tax deductible items as mortgage payments, property taxes, medical expenses and charitable contributions, among other things. In every case, thought should be given to tax brackets as well as both present and future income before making a decision to postpone or accelerate any given tax deduction.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping are experts in the area of tax planning and can help you implement tax strategies that will save you valuable tax dollars. Receive a free, no obligation consultation by emailing us at tina@lasvegasbookkeeping.com or calling us at (702) 514-4048. Don’t hesitate! Let the tax professionals at Las Vegas Bookkeeping help you get your financial affairs in order so you can achieve that maximum possible tax advantage for 2018!

Guideline For Retaining Tax Documents

Now that the 2018 tax deadlines have passed, it is a good time to think about what to do with the tax documents associated with 2017 tax returns. In general, it is recommended that receipts and statements that could be used to substantiate items reported on a tax return be kept until the statute of limitations for that return expires. However, the length of this statue may vary according to the particular circumstances associated with the return. In addition, documents pertaining to such things as property and securities should be kept beyond the statute of limitations. Since the IRS and the United States Tax Court operate under the assumption that a taxpayer is guilty of tax fraud if they are unable to provide proof of the items claimed on a tax return, it is crucial to know and understand the guidelines associated with retaining tax documents.

In general, the IRS will only audit a tax return within three years from the deadline for submitting the return or from the date the return is actually submitted, whichever comes later. However, this limitation period may be extended to six years if the return incudes foreign asset income that exceeds $5000 or a deduction for a bad debt or a worthless security. It may also be extended to the six year mark in the case where gross income is underreported by more than 25%. The audit limit for an intentionally fraudulent tax return is indefinite. Based on these time constraints, tax documents should be kept for a minimum of three years to seven years from the time a tax return is submitted, depending on the nature of the return.

The following are some more specific guidelines pertaining to the length of time various documents should be retained for tax purposes:  

·        Tax Returns and Supporting Documentation

Tax returns and all associated tax information should be kept for a minimum of seven years in order to exceed the statute of limitations period for an IRS audit. Supporting documentation includes W-2s and 1099s as well as checks and payment records that are necessary to support any credits or deductions claimed on the returns.

·        Bank and Credit Card Statements

Since bank and credit card statements are not considered to be sufficient documentation for items reported to the IRS, they do not need to be held for any specified time period.  

·        Employment Tax Records

Employment tax records should be kept for a minimum of four years from the date the tax is due or the date it is paid, whichever comes later.

·        Records Related to Property Transactions

Property tax records should be retained until the expiration of the IRS statute of limitations for the tax year in which a property is sold or disposed of by some other means. Such records are needed to calculate depletion, amortization and depreciation for tax purposes and to determine the net capital gain or loss that has resulted from owning the property. It should be noted that, in the case of a nontaxable property exchange, it is necessary to hold the records of the old property as well as the one acquired in the exchange.

·        Brokerage Statements

Brokerage statements should be kept indefinitely due to the fact that the cost basis of a security must be reported at the time of sale. This requires brokerage statements documenting the security’s complete transaction history.

·        IRA Records

IRA transaction records, including those for Roth IRAs, should be kept until all funds are withdrawn from the account and the account is closed.

·        Business Contracts

All business contracts, including partnership agreements, property records and commission and royalty structures, among other things, should be kept indefinitely.

It should be noted that documents that are no longer needed to substantiate items reported on tax returns may be needed for other purposes. Various entities such as lenders, other creditors and insurance companies have their own time and documentation requirements that may differ from those of the IRS.                 

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702) 514-4048 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today

Repatriation in Full Swing

As a direct result of the huge reduction in corporate tax rates that went into effect at the beginning of the year, many companies who have long held money overseas are now bringing it back to the United States. The Tax Cuts and Jobs Act that was passed in December of 2017 and became effective on January 1, 2018 provided for a permanent reduction of the corporate tax rate from 35% to 21%. In addition to this whopping 40% decrease, the law also provided for a 15.5 % repatriation tax rate on cash assets. As was to be expected, these newly initiated tax advantages have resulted in a surge of cash being brought back in to the country over the last few months.

Apple, which had previously held over 90% of its total cash assets on foreign soil, was one of the first companies to capitalize on the benefits of the new tax law. Almost as soon as the legislation was in place, they paid a tax bill of more than $38 million to move over $250 billion in foreign earnings back into the United States. Announcing that they would use some of this money to create jobs and build a new campus, CEO Tim Cook said that the company has a “deep sense of responsibility to give back to the country and the people who make our success possible.” Although Apple’s foreign holdings would have been taxed even if they had left them overseas, they saved over $43 billion tax dollars above and beyond what they would have paid if the repatriation taken place before the new tax law became effective.

Although some analysts point out that the financial impact of Apples’ repatriation might not be as much as is expected, few can dispute the idea that bringing oversees dollars back into the country will have a positive effect on the economy. In fact, Daniel Ives, head of technology research at GBH Insights has gone on record saying that he believes over 70 % of all cash brought back into the country as a result of the new tax law will be used for capital returns. Apple alone has promised to create over 20,000 new jobs which is an increase of over 20% from the approximately 84,000 people already in their employ at the end of last year. In addition, they have announced that they will increase capital expenditures over the next five years and have recently added an additional $4 billion dollars to a company-sponsored fund that supports United States manufacturing.

Although the Apple repatriation represents the largest amount by a single entity, other companies have been quick to follow suit. In fact, Daniel Ives of GBH Insights estimates that technology companies alone have approximately $600 billion in overseas holdings with over 50% of that expected to be brought back into the county in 2018 alone. Another estimate by the Macquarie Research Institute suggests the total of $860 will be repatriated across all sectors before the year comes to a close.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702) 514-4048 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today.

2018 Tax Planning Tips

With a new tax law in effect as of January 1st, effective tax planning for the coming year will require a whole new approach. The Republican tax reform proposal that was voted into law at the end of 2017 includes some sweeping changes that affect both individuals and businesses. This being the case, taxpayers can only hope to maximize their tax advantage in the coming year by becoming familiar with the provisions of Trump’s tax bill and adjusting tax strategies accordingly. While it is always wise to look at what impact financial events of a previous year have had on taxes owed, this year that impact will have to be analyzed with an eye on the potential effects of the new tax law.

The following are helpful tax planning tips for the coming year:

1)      Be aware of the new tax brackets.

The new tax reform plan still has seven tax brackets (the same as the old plan), with the tax rates for each bracket mostly lower. However, the income limits of the tax brackets have changed significantly. These changes represent an important tax planning consideration, especially as they relate to realizing capital gains and capital losses and accelerating or deferring income.

2)     Become familiar with changes to 529 plans.

The limit for contributing to 529 plans without a gift tax assessment has been increased from $14,000 to $15,000. In addition, the new tax law allows taxpayers to use 529 funds to cover elementary and high school tuition with a limit of $10,000 per year per beneficiary. This new provision provides a significant tax saving opportunity for those individuals who are living in states where portions of 529 plan contributions are exempt from the state income tax.

3)     Make use of the more lenient medical expense deduction.

The new tax law allows taxpayers to deduct medical expenses that are in excess of 7.5 % of their adjusted gross income. This amount represents an increase in the medical expense deduction from 2017 which only allowed a tax deduction for unreimbursed medical expenses that were in excess of 10% of adjusted gross income.

4)     Weigh other changes to the tax code that may affect taxes owed.

In addition to the items outlined above, there are numerous other changes to the tax code that will impact taxpayers in different ways. For example, the tax deductions for job-related moving expenses and home equity loan interest have been eliminated and the threshold for writing off mortgage interest has been reduced. Because changes such as these will affect tax related decisions as they present themselves, it is important for taxpayers to be familiar with the provisions of the new tax bill as the year gets underway.

In addition to being aware of the tax changes initiated by Trump’s tax plan, it is important, as always, to keep good records and track tax-related expenses all year long rather than scrambling to get things together at tax time. This kind of careful record- keeping, combined with making use of the tax advantages that are built into the tax code, have the potential to provide a significant savings of tax dollars. With income tax representing one of the major expenses for many households, these tax-related tasks take on a very important role.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702)514-4048 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today.

New Tax Law Brings Major Change

The provisions of the new tax law, many of which went into effect as of January 1st, are broad and extensive. This being the case, both business and individual taxpayers would be well advised to understand the ramifications of these sweeping changes before making important tax planning decisions. Although most of the changes go into effect at the beginning of 2018, some have future initiation dates. In addition to starting at different times, some of the provisions also have phase out periods which adds another twist to the tax planning mix. The following list highlights some of major changes targeted by the new tax law organized according to activation date.

Individuals

Retroactive

·        Increase in Medical Expense Deduction

Retroactive to include the 2017 tax year, taxpayers can deduct out-of-pocket medical expenses that exceed 7.5 percent of adjusted gross income. This is down from 10 percent which was the threshold prior to the passage of this legislation.

Effective Immediately

·        Expansion of Child Tax Credit

The new tax law provides for the expansion of the Child Tax Credit from $1000 to $2000 and increases the amount of the refundable portion to $1400.

·        Doubling of Estate Tax Exemption

The Republican tax bill increases the annual estate tax exclusion from $5 million to $10 million ($20 for couples with appropriate tax planning strategies). These amounts are indexed to inflation and will remain in effect until 2025. At this time, in the absence of further legislation, the estate tax exclusion will revert back to the previous base, also indexed to inflation.

·        Increase in Alternative Minimum Tax Exemption

The new tax law provides a break for high income earners who are affected by the Alternative minimum Tax. Under the provisions of the new legislation, the exemption amount is increased from $54,300 to $70,300 for single taxpayers and from $84,500 to $109,400 for married couples filing jointly. In addition, the income threshold at which the tax begins to pause out is increased dramatically – from $120,700 to $500,000 for single filers and from $160,900 to $1 million for married couples filing joint returns.  

Future Start Dates

·        Repeal of Individual Mandate

Although the Affordable Care Act will remain in effect, the provision that requires most Americans to be covered by a basic level health insurance will be repealed on January 1, 2019. As of that date, individuals will no longer be penalized for not carrying health insurance and business will not be required to provide health insurance for their employees.

·        Cancelation of Alimony Deduction for New Divorces

As of January 1, 2019, alimony payments for new divorces will no longer be tax deductible for the person making the payments and the person receiving the payments will no longer have to count them as taxable income.

Businesses

Retroactive

·        Allowance for Immediate Capital Expensing

The new tax law allows for the deduction the full amount of any capital expenditure during the tax year that purchase is made. This provision is retroactive to January 27, 2017 and continues until the end of 2022, at which time it will be phased out at the rate of 20% per year.

Effective Immediately

·        Limitation on Interest Deduction

Beginning this year, the interest deduction will be limited to 30% of earnings before interest, taxes, depreciation and amortization. On January 1, 2022, the reduction of income by depreciation and amortization will drop off and the interest deduction will increase to 30% of income, reduced only by interest and taxes.

·        Allowance for Repatriation of Foreign Income

Under the provisions of the new tax law, foreign earnings that have accumulated overseas will be charged a repatriation tax of 15.5 % for cash assets and 8.0 % for illiquid assets. Although the onetime tax will be levied immediately, companies are given the option of paying the tax bill over a period of eight years.

Future Start Date

·        Provision for Amortization of R&D Investment

As of January 1, 2022, companies will be required to amortize research and development expenditures over a period of five years rather than writing off the entire amount of the expense in the year it is made.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702)514-4048 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today.

Senate and House Compromise on Tax Reform

With a vote of 51 to 49, the Senate voted in favor of its version of HR 1, leading the way to the passage President Trump’s $1.5 trillion tax cut package. Since the approval of the Senate’s tax reform plan follows the approval of the House version, the path is now open for the two houses of Congress to work out their differences and agree on a piece of tax legislation that President Trump can then sign into law. If the process goes as the Republicans hope it will, they will be victorious in approving the most significant tax overhaul in over three decades.

Although the Senate and House tax reform plans target the same issues, they often differ on how these items should be treated. One of the major difference is that the House bill makes the new tax adjustments permanent for both businesses and individuals while the Senate bill provides for the expiration of most of the individual tax changes at the end of 2025. The following is a list of some of the important areas targeted by the Republican tax reform packages with an indication of how the House and Senate plans differ:

·        Both tax plans suggest a significant increase to the standard deduction but differ slightly on the amounts of the increase. The House bill raises the standard deduction to $12,200 ($18,300 for HOH and $24,400 for couples filing jointly) while the Senate bill increases it to $12,000 ($18,000 for HOH and $24,000 for couples filing jointly).

·        The House bill proposes four tax brackets with the top marginal tax rate held at 39.6% while the Senate bill keeps the current seven tax brackets but reduces the top marginal rate to 38.5%.

·        The House bill proposes eliminating the tax deduction for medical expenses while the Senate bill keeps it with a cut-off of 7.5 % for the next two tax years.

·        The House bill increases the child tax credit to $1600 for each child under the age of 17 while the Senate bill increases it to $2000 for each child under the age of 18. Both tax reform plans make the first $1000 refundable.        

While the House and Senate tax plans differ on the key points outlined above they are in agreement on the following items: 1) elimination of the additional personal exemption, 2) elimination of exemptions for spouse and dependents, 3) elimination of the additional deduction for the blind, disabled or elderly (over 65), 4) elimination of the sales tax deduction and/or the state and local income tax deduction, 5) retention of the charitable donation deduction, 6) retention of the property tax deduction with a cap at $10,000, 7) elimination of the tax deductions for home office expenses, unreimbursed employee expenses and tax preparation services 8) elimination of tax deductions for student loan interest and moving expenses and 9) exclusion of the first $250,000 of capital gains from the sale of a home that has been lived in for five out of eight of the previous years (allowed once every five years, House bill subject to income phase out). 

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702)514-4048 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today.

IRS Reverses ACA Declaration Requirement

The IRS has recently announced that it will reverse its position on enforcing the ACA declaration requirement. Although the agency accepted tax returns that failed to indicate healthcare coverage during the 2017 filing season, they have recently stated that this information will be required in order for a return to be processed in 2018. An IRS spokesperson clarified the reason for the change, noting that the process “reflects the requirements of the ACA and the IRS’s obligation to administer the healthcare law.” They also maintain that declaring health coverage at the time a return is filed makes filing easier and reduces the possibility of a refund delay.

The requirements of the Affordable Care Act state that every taxpayer must demonstrate that they have “essential minimum” healthcare coverage. Forms of coverage that fulfill this requirement include Medicare, Medicaid, TRICARE, VA benefits, health insurance provided by an employer, privately purchased health insurance and health insurance obtained though the Health Insurance Marketplace. If one of these forms of coverage is not in place, the taxpayer must either obtain a waiver based on demonstrating a financial hardship or be subject to the assessment of a penalty. The penalty, which is referred to as the shared individual responsibility payment, is the greater of 2.5% of the taxpayer’s adjusted gross income or $695 per adult and $347.50 child up to a maximum of $2085.

Although President Trump signed an executive order earlier this year giving executive departments and agencies the authority to roll back certain aspects of Obamacare, the IRS has actually stepped up enforcement. While 2017 tax returns were processed even when line 61 indicating health care coverage was left blank, this will not be the case in for the upcoming tax season. In fact the IRS recently issued an official statement indicating that the 2108 filing season will be the first time the IRS will not accept tax returns that omit healthcare information. They have said that electronically filled and paper returns with this omission will be thrown out, thus delaying the receipt of any refund associated with the return. In addition to stepping up enforcement for the current tax year, the agency has recently sent out letters to over 130,000 taxpayers who did indicate healthcare coverage on their 2014 and/or 2015 tax returns.

Only time will tell how all of this will play out. Republican Congressmen have launched several attempts to repeal and replace the Affordable Healthcare Act but, to date, have been unsuccessful. This means that the IRS requirement that taxpayers indicate their healthcare coverage on their 2017 tax returns will stand as the 2018 tax season approaches. Although none of the more serious tax collection techniques such as tax liens or tax levies apply to meeting this requirement, the threat of a withheld tax refund may well be enough to force taxpayers into compliance on this issue.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702)514-4048 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today

Paying Your Income Tax Bill

With the close of Tax Season 2017 less than a month away, it is likely that many taxpayers will end up being faced with a tax bill in excess of what they are able to pay. When this situation occurs and your tax bill exceeds your available financial resources, the best approach is to face the situation head on. To ignore the problem and hope that it will go away will only make matters worse. Not only will this approach result in an increased back tax balance due to the continued accumulation of penalties and interest, but it could ultimately result in the initiation of a tax lien or some other type of enforced collection activity by the IRS.

One of the easiest options for paying a tax bill when the necessary funds are not immediately available is to request short term administrative extension. This agreement postpones the payment of the tax amount due for 120 days, at which time the balance must be paid in full. However, although payment of the tax balance is postponed, a failure-to-pay penalty of one-half of one percent of the tax amount due will be charged each month during the grace period. Other no hassle payment options include charging the tax debt to a credit card, withdrawing the necessary funds from a retirement account or taking out a bank loan to cover the tax amount owed. When considering any of the aforementioned choices, the cost of borrowing should be weighed against any interest or penalties that will be assessed by the IRS or state tax agency.

In the absence of a borrowing alternative, a taxpayer who is short on financial resources can request setting up an IRS Installment Agreement. Such an agreement provides a means of paying off a back tax balance by making regular monthly installment payments. Although a small origination fee is charged, approval for this tax settlement option is almost automatic as long as the requesting taxpayer owes less than $10,000 and is in otherwise good standing with the IRS. The taxpayer is normally allowed to set the amount of the monthly installment payment as long as it will result in the full balance of the tax debt being paid off within five years form the date the agreement is initiated.  

Tax resolution options which involve settling a tax debt for less than full amount owed are harder to obtain but may be a viable alternative for taxpayers who meet certain specific qualifying criteria set by the IRS. Such partial payment tax settlement options include the IRS Offer in Compromise and the IRS Partial Payment Installment Agreement, among others. In general, the IRS only grants these tax settlement options when they determine that the taxpayer in question is very unlikely to be able to pay the full balance of the tax debt they have accumulated within a reasonable period of time.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702)945-2757 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today

The IRS Roll Back of Obamacare

On January 20, 2017, his very first day in office, President Donald Trump signed an executive order giving the Department of Health and Human Services as well as other federal departments and agencies including the IRS the authority to roll back the enforcement of certain Affordable Care Act requirements. IRS Commissioner John Koskinen responded to this directive almost immediately by announcing that, although the agency was being allowed to use its discretion as far as enforcing the income tax reporting requirements associated with Obamacare, he did not think that the collection of individual responsibility payments would be significantly affected for the 2017 tax season. Recently, however, Koskinen has issued a more specific statement, announcing that the at IRS will, in fact, accept and process 2016 tax returns that do not indicate the status of the taxpayer’s healthcare coverage. Only time will tell how this increased leniency will affect the collection of penalty payments for the current year.

Although one of the central campaign promises of Trump’s candidacy was that he would take immediate steps to repeal the Patient Protection and Affordable Care Act, this is an action must be approved by both houses of Congress and could take a significant amount of time. In addition, the process is very likely to come up against numerous stumbling blocks. For example, the Congressional Budget Office recently issued a report saying that retaining the insurance reforms implemented with Obamacare while repealing the associated subsidies and penalties with would increase both insurance premiums as well as the number of uninsured taxpayers. According to the data collected in this study, premiums would nearly double over the next ten years and the number of people without health insurance coverage would increase to over 30 million. In addition to negative findings such as this, many legislators have indicated that they do not feel comfortable with moving toward a repeal of Obamacare until a suitable alternative is in place.

Faced with time constraints and obstacles such as those described above, Trump signed an executive order giving various federal agencies leniency and discretion in enforcing the existing healthcare directive. The order specifically directs the heads of these organizations to “delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax penalty or regulatory burden” on healthcare providers, health insurers or recipients of health care services. As an agency targeted by the executive order, this language allows the IRS a certain amount of latitude in terms enforcing the income tax reporting requirements specified by the Affordable Care Act. In response, IRS Commissioner John Koskinen has announced that the agency will process 2016 tax returns even when the line item indicating healthcare coverage is left blank, an omission that would previously have resulted in a kickback of the return.

Although taxpayers whose tax returns are processed without indicating healthcare coverage will avoid payment of the individual responsibility payment, it is projected that the change will have little effect on tax revenue collected during the 2017 tax season. While the 2016 shared responsibility penalty can be as much as $2085 or 2.5% of a taxpayer’s adjusted gross income, whichever is greater, it is expected that the overall effect of not collecting the penalty from those who would have owed it under the previous guidelines will be small. This is due to the fact that approximately 90% of taxpayers would not have been assessed the penalty in the first place due to the fact that they have either valid healthcare coverage or a qualifying exemption.

The licensed accountants and bookkeepers at Las Vegas Bookkeeping have the knowledge and expertise to help your business run smoothly and efficiently. Contact us by phone at (702) 945-2757 or by email at tina@lasvegasbookkeeping.com to receive a free, no obligation consultation. Don’t wait! Streamline your business operations by contacting the professionals at Las Vegas Bookkeeping today.