The tax filing deadline for individual income tax returns is October 17, 2016.
The IRS has informed tax professionals of a new law that will be in force in 2017 for the filing season for 2016 tax returns. The new law will require the IRS to hold all tax returns that include refunds including Earned Income Tax Credit and Additional Child Tax Credits, until February 15th. This law will be used as a safeguard against identity theft and tax fraud. Those taxpayers that normally file early to get their refund early, will have their refund delayed by the IRS. The IRS will begin issuing the early filing refunds on February 15th. The additional time to process the refunds will assist the IRS in detecting identity theft and potentially preventing tax fraud.
Also, announced is the due date for filing the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, for Form 1095-B Health Coverage, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns for Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from February 29, 2016 to May 31, 2016 if not filed electronically.
Since Form 1095-C generally includes information about health care coverage and is used to determine eligibility for the premium tax credit, the delayed due dates for reporting may affect the timing of your reporting for health care credits. Some employees (and related individuals) who enrolled in coverage through the Marketplace, but did not receive a determination from the Marketplace that the offer of employer-sponsored coverage was not affordable, could be affected if they do not receive their forms 1095-C prior to filing their tax returns. As a result, for the tax year 2015 only, taxpayers who rely upon other information received from employers, about their offers of coverage for purposes of determining eligibility for the premium tax credit when filing their income tax returns, need not amend their returns once they receive their forms 1095-C or any corrected forms 1095-C.
Individual taxpayers who use form 1095-B or form 1095-C to confirm that they had minimum essential coverage for purposes may not have this information before tax time. For the 2015 tax year only, taxpayers who rely upon other information received from coverage providers about their coverage will not need to amend their tax returns after receipt of the form 1095-B or form 1095-C or any corrections.
You can review the entire article provided by the National Society of Accountants at Year End Tax Tips For Businesses by NSA
Question – What is the tax deduction when I donate my car?
Example – When you donate your old car to charity, what’s the write-off?
Answer – Kelly Blue Book Value or Price at which the donated car is sold by the charity?
The answer is PRICE AT WHICH THE DONATED CAR IS SOLD BY THE CHARITY.
In most cases, your deduction is limited to the price paid for the vehicle when it is sold by the charity to raise cash. But, there’s a notable exception:
If the charity uses the vehicle in its mission (to deliver meals to the needy, for example) or fixes it up and gives it (or sells it for less than market value) to a needy family, you are allowed to claim a deduction equal to the vehicle’s fair market value (check used car guidebooks or Web sites). That could produce a bigger write-off since the value a charity gets at auction is likely to be a lower wholesale or even fire-sale price.