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American Health Care Act of 2017
What to know, what to expect

Today, the House of Representatives passed the GOP’s proposed American Health Care Act (AHCA) plan in a 217 to 213 vote. The plan would repeal and replace several provisions of the current Affordable Care Act (ACA) by amending contribution limits to HSAs, returning the medical expense deduction AGI threshold to 7.5% and repealing certain taxes enacted under the ACA.

The following are a few of the changes that would result if the bill passes in the Senate:

  • Ends the tax penalty against people without coverage.
  • Ends the Medicaid expansion funding.
  • Changes Medicaid from an open-ended program to one that gives states fixed amounts of money per person.
  • Replaces the ACA's cost sharing subsidies based mostly on consumers' incomes and premium costs with tax credits that grow with age.
  • Repeals taxes on the wealthy, insurers, drug and medical device makers.
  • Consumers who let their coverage lapse for more than 63 days in a year would be charged 30% surcharges to regain insurance. This would include people with pre-existing medical conditions.
  • State waivers would allow insurers to charge older customers higher premiums by as much as they'd like.
  • States get $8 billion over five years to finance high-risk pools that cover those with pre-existing conditions.
  • States get $130 billion over a decade to help people afford coverage.
  • Keeps ACA provision that children can remain on their parents' insurance plans until age 26.

At this time, it is uncertain whether the Senate will pass the bill. However, the bill cannot be filibustered by the Senate and only needs a simple majority to pass. As it moves through this step in the process, it is absolutely vital to stay informed and educated on what this bill could mean for you and your clients.

We're closely monitoring this legislation and will update you as developments occur.


Google Docs Scam Hitting Mailboxes
Viral phishing scam span

Yesterday, there was a new type of phishing attack that hit millions of mailboxes. It targeted Google Docs/Gmail users. Those hit received an email from someone in their contacts (like a taxpayer client). The email stated that the individual was “sharing a document.”

Anyone who clicked to open the document was sent to a page hosted by Google. It wouldn’t ask for a password; instead, the pages asked to give “Google Docs” permission to read your email and contacts. Except, that wasn’t Google Docs, but scammers.

Google has taken action to protect users against an email impersonating Google Docs, and has disabled the offending accounts. However, if you think you were affected, you should visit g.co/SecurityCheckup.


e-Services Update
Summer upgrade coming

Tentatively starting June 18, the e-Services’ platform will move to a more modern technology. One result will be an improved look and feel of applications, including the e-file application. Use of e-Service products will not be affected. There will be no changes to the log-on process.

State users will experience some minor functionality issues from June through October. They also will be unable to submit new or update existing state e-file coordinator applications or file new or update existing TDS applications during this time.


Form 990-Series Deadline Approaching
Opportunity to market your business

Form 990-series information returns and notices are due on the fifteenth day of the fifth month after an organization’s fiscal year ends. Many organizations use the calendar year as their fiscal year, making Monday, May 15, the deadline for filing their 2016 returns.

The IRS has noted that many local, small organizations that fail to file annual reports for three consecutive years may lose their tax-exempt status. This is a great opportunity to send out a press release, share your services with the community and build new business relationships. We have drafted a starter press release that you can customize for your business.

The IRS publishes the names of organizations identified as having automatically lost their tax-exempt status. An option would be to specifically reach out to organizations on this list.


Returns Filed Per PTIN
Your questions answered

Members have reached out to us stating that they cannot see the number of returns filed in their PTIN account.

In order to see the “Returns Filed per PTIN,” in your account, you have to be an EA, CPA, attorney or a participant in the Annual Filing Season Program. In addition, a minimum of 50 returns must have been processed with your PTIN in the current calendar year.

If you meet these requirements, a chart that displays your numbers will be available in your PTIN account. The data is updated monthly and includes only Form 1040 series returns processed through the date specified.


You Make the Call
Quiz yourself

This week’s question is brought to you by Sheri Fronsee, CPA, from our Tax Knowledge Center.

Question: Jamie and Claire are married and have total earned income of $40,000. They have a daughter, Bree, age 22 who graduated from college in May. After graduation, Bree moved back home with her parents and worked. She lived at home from June until December and earned $22,000.

Jamie and Claire would like to know if they are still eligible for the earned income tax credit (EITC) using Bree as a qualifying child for EITC purposes, and Bree would like to know if she may claim her own exemption when preparing her tax return this year.

Answer to this week’s question >


Should AAA Equal Retained Earnings? Webinar
1 CPE for AFSP, EA, CPA, CRTP

Do you know the difference between an Accumulated Adjustments Account (AAA) and Retained Earnings (RE)? AAA amounts are earnings that have already been taxed, while retained earnings are all earnings.

Join us for our Should AAA Equal Retained Earnings? webinar. We’ll compare and contrast the AAA and RE of an S corporation, and review an example Form 1120-S, so you can properly prepare it for your clients.


EA Exam Review Online Workshops
Comprehensive study options

When preparing for the EA exam, it’s recommended that you use a variety of materials to ensure you pass all three parts the first time. You can depend on us for all your study needs!

Register for our EA Exam Review Course Online Workshops and soon you’ll be reaping the rewards of this incredible achievement.

  • EA Part I Online Workshop (May 10)
  • EA Part II Online Workshop (May 24)
  • EA Part III Online Workshop (June 15)
All Education >
Tax Forums >
Webinars >

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