Month: January 2016

Archive for January 2016

ALEs: Information Reporting and Health Coverage

The Affordable Care Act requires applicable large employers (ALEs) to file information reporting returns with the IRS and their employees. ALEs are generally those employers with 50 or more full-time employees, including full-time equivalent employees in the preceding calendar year. The vast majority of employers are not ALEs and are not subject to this provision.…

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Tax Brackets, Deductions and Exemptions for 2016

More than 50 tax provisions, including the tax rate schedules, and other tax changes are adjusted for inflation in 2016. Let’s take a look at the ones most likely to affect taxpayers like you. The tax rate of 39.6 percent affects singles whose income exceeds $415,050 ($466,950 for married taxpayers filing a joint return), up…

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Tangible Property Expensing Threshold Increases

The safe harbor threshold for small businesses deducting certain capital items has increased from $500 to $2,500. The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016. The…

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10 Tax Breaks Reauthorized for Tax Year 2015

Congress took action in late December and passed a tax extender bill formally known as the Protecting Americans from Tax Hikes Act of 2015 (PATH), which was then signed into law. Retroactive to January 1, 2015, many tax provisions were made permanent while others were extended through 2016 or 2019. Let’s take a look at some of…

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Cover & Rossiter Director Peter Kennedy Quoted in New York Times on New FASB Proposal

Cover & Rossiter Audit Director, Peter Kennedy, CPA was quoted in a recent New York Times article regarding the potential concerns that could stem from the Financial Accounting Standards Board’s (FASB) newly announced proposal, which ultimately changes the definition of materiality as it pertains to corporate financial disclosure. Under this proposal, materiality will become a strictly legal concept,…

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