Another tax season is underway and you may notice a few new faces around the office. As many of you know, Janice Crumpton, our firm administrator, retired last June. We are very pleased to introduce her replacement, Alexis Kelly, who came on board back in September. Alexis has a Masters Degree in Business Administration and Human Resources from the University of Maryland, and brings a strong skill set to the position. But more importantly, she’s just plain friendly and you will enjoy meeting her when you come by.
Another addition to our staff is Terri Lynn Nomm, who came on board in August as a staff accountant, bringing with her fifteen years of experience in small business taxation and accounting. Terri earned her Accounting Degree from Townson University, which is also in Maryland. She is very familiar with Quickbooks and other accounting software unique to small business. I hope you get a chance to meet her during the season.
And yes, Biff Lang is still here. He has agreed to stay through another tax season and we are so glad he is giving up some of his time on the golf course to help us out.
Here’s to a prosperous new year on the Outer Banks. Please be sure to call us for all your accounting needs.
This tax season promises many challenges. The Affordable Care Act (ACA) continues to impact tax returns as its provisions are phased in. A big change is the new tax for individual responsibility for health care coverage and form 8965, which calculates a possible exemption from this tax. Basically, everyone was required to have health insurance for 2014. If you or any member of your family did not have insurance, the tax for no coverage is $95 per person. However, you may be exempt from this tax due to income levels or you may have received an exemption certificate from the federal Marketplace. Form 8965 reports these exemptions.
If you did acquire insurance through the Marketplace, you may have been awarded a credit to reduce your health insurance premiums. Another new form, the 8962, is used to calculate this credit based on your actual income for 2014. If the amount you used towards the premiums is more than the credit, you will owe back the difference. If the amount you used is less than the credit, then the remaining credit will flow through on your tax return.
We are here to help you determine how these and other changes may impact your tax return. Give us a call at 252-261-2333.
The Affordable Care Act is front and center in the tax planning arena, because most of the major provisions take effect in 2015. One aspect of the Act which is effective for 2014 directly impacts how S Corporations handle insurance premiums and should be reviewed before year end to avoid potential penalties.
The issue centers around the practice of reimbursing a shareholder for premiums paid on a personal policy. If the corporation has a group plan that covers all employees, there should be no problems. But if the corporation has more than one employee and reimburses some or all of its employees’ health care premiums, then it is in violation of the ACA and potentially subject to a penalty of $100 per day per employee.
This is a complicated issue and we are certain that the IRS will be issuing further guidelines. In the meantime, it is best to examine a company’s practices on a case by case basis to ensure compliance with the Act. If changes are necessary, it could impact the way in which you file your 2014 W-2s, so this is a time sensitive issue. Please remember that we are available to help you determine the best course for your business.
It’s official. We have moved out of the Kill Devil Hills office and are now operating solely in Kitty Hawk. It’s been a long, exciting journey and we have enjoyed welcoming our new clients. Now we look forward to introducing them to our entire staff as we continue to meet their business and accounting needs.
Biff Lang has graciously agreed to delay his retirement and stay with us through the upcoming tax season. And remember that our enhanced technology and a secure web portal enable an easy electronic transfer of documents. Also, we have staff members living as far south as Wanchese. Drop off and pick up is certainly an option.
As you all know, back in the fall of 2012, the firm of Hurd & Lang merged into our firm. After the 2013 tax season, Otis Hurd started his well-deserved retirement. The last I heard, he was having a ball and catching plenty of fish.
This fall we will implement the second part of the merger, whereby we will close the Kill Devil Hills office and move all firm operations to our Kitty Hawk office. We believe this will enable us to enhance client services by combining staff resources in one location.
We have welcomed and enjoyed the relationships we have been forming with the new clients we have met. If our move in any way causes concern, we trust that you will let us know so a solution can be found. We have staff members living as far south as Wanchese who probably pass by your business every day. Drop off and pick up is certainly an option.