Daniel Cullinane CPA

25 Plaza 5 25th fl Jersey City NJ                                          phone 732-516-1648 fax 732-516-9778

MBA Taxation

Daniel Cullinane CPA

2500 Plaza 5 25th fl  Jersey City NJ 07311                                                          phone 732-516-1648  fax 732-516-9778

                 MBA TAXATION                                                                                                         

Copyright ©​ Daniel Cullinane CPA.

income tax preparation







The Trump administration has pledged sweeping tax reforms in 2017 but some significant tax changes are already in store.

Strategy: Adhere to the new rules. If any laws or regulations are modified or repealed you will have time to react. In particular, tax provisions in the Affordable Care Act is on the chopping block. There are seven new tax rules scheduled to take effect to take effect in 2017

  1. Stand alone HRAs: A Health Reimbursement Arrangement (HRA) is a tax favored way to cover health insurance costs of employees. The ACA effectively prohibited stand alone HRAs may now be used by businesses with fewer than 50 employees that do not offer any other group health plan to employees. The maximum annual employer contribution is $4,950 for an employee only HRA and $10,000 for family coverage.
  2. Medical deduction threshold: For decades, the deduction threshold for medical expenses was 7.5% of adjusted gross income. The ACA raised this threshold to 10% of AGI for most taxpayers, but retained the lower 7.5% of AGI through 2016 for taxpayers age 65 or older. Under current laqw, the threshold for those who are 65 or older is set to increase in 2017
  3. ​ITINs When you file your 2016 tax retun, you must provide your Taxpayer Identification Number (TIN) to the IRS. Generally this is simply your Social Security Number. However if you are not eligible for an SSN but still have a tax filing obligation, the IRS will issue you an Individual Taxpayer Identification Number. Under the Protecting Americans from Tax Hikes Act you ITIN will expire if you do not file a tax return for three consecutive years. 
  4. W-2 BS 1099 forms Previously employers had to file Form w-2 by Feb 28 of the year following the year the wages were earned. Form w-3 Transmittal of Wage and Tax Statements was used for that purpose. For those w-2s, the due date for e-filed returns was March 31. Silmlarly most 1099 forms had to be filed by the last day of February. For those 1099s the due dated for most information returns filed electronically was March 31 The Path Act now requires Forms w-2, w-3 and returns to report nonemployee compensation to be filed by Jan 31. E-filed returns are no longer eligible for an extended filing date.
  5. Partnership and corporation returns: A little noticed 2015 transportation law imposes new filing deadlines for partnership and corporations, begining with 2016 returns filed in 2017
  6. Partnerships must file by the 15th day of the third month after the end of the tax year instead of the fourth month
  7. C corporations must file by the 15th day of the fourth month after the end of the tax year instead of the third month. For C corps with fiscal  years ending on June 30, the accelerated due date does not take effect until tax years beginning after 2025
  8. Extensions for corporations: The same 2015 transportation law changes the automatic three month filing extension for corporations to six months. However for any return for a tax year of a C Corp ending on Dec31 and beginning before Jan 1,2026 the extension period is five months. If the tax year of a C corp ends on June 30 and begins before 2026, it is seven months
  9. Due dates for ACA returns. Employers may be required to provide ACA information returns to the IRS and emplpyees. In Notice 2016-70 the IRS extended the 2017 due dates for coverage in 2016. Specifically , the deadline for form 1095-b Health Coverage and Form 1095-c Employer Provided Health Insurance Offer and Coverage was changed from January 31,2017 to March 2,2017
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