GEORGE JOHNSON & COMPANY
Dear Clients and Friends,
Welcome to the summer issue of the GJC Advisor Tax Update. The GJC team is focused on providing sound financial guidance, value and knowledge to our clients and professional connections to help them manage and grow their businesses. Although tax planning can be difficult when the rules are in constant state of flux, we can assist with actions you can take to manage your tax bill. This issue offers insight on tax topics such as reporting requirements for the Affordable Care Act; IRS impersonation scams circulating; and three automatic accounting method changes. We have also shared spotlights about what’s going on within the firm. We hope you enjoy this edition of the GJC Advisor.
IRS Confirms ACA Penalties Still Apply, So ACA Reporting on Forms 1094 and 1095 Continues Too
Amidst the White House and legislative activities aimed at repealing the Affordable Care Act
(“ACA” or colloquially referred to as “Obamacare”), many employers are questioning whether the ACA penalties will be enforced for prior year violations and if its reporting requirements still apply to the current year. The IRS has recently confirmed that Obamacare continues to be the law of the land, taxpayers are required to follow the law, and the IRS will continue to enforce its provisions.
Warning – IRS Impersonation Scams
As the summer heats up, so apparently does the frequency of fraudulent calls by individuals posing as IRS or United States Treasury officials. This observation is based on our experience here as we recently noticed an increase in client calls to us regarding this type of activity, and we covered the topic here.
This Client Alert summarizes important information on how to respond in the event you are contacted by someone stating they are from the IRS, United States Treasury or other state or local taxing authority.
If you receive a phone call from someone claiming to be from a taxing authority,
1 Request the employee’s name, badge number, and call back number, and record the caller ID information (if available).
2 Do not provide any personal or financial information to the individual. The IRS does not request financial account numbers, passwords, or other sensitive information.
3 Do not make any payments. The IRS or other officials will never demand payments via Western Union, MoneyGram, bank wire transfers, iTunes gift cards, or other gift cards.
4 If the caller becomes threatening, hang up.
5 Report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at https://www.treasury.gov/tigta/contact_report_scam.shtml or call the IRS at 1-800-366-4484.
Contact GJC for additional guidance.
IRS Introduces Three New Automatic Method Changes and Provides Modified Procedures
On April 19, 2017, the Internal Revenue Service issued Revenue Procedure 2017-30 to update the list of automatic changes in methods of accounting to which the automatic change procedures under Rev. Proc. 2015-13 applies. In addition to adding three new automatic accounting method changes, the Rev. Proc. modifies existing automatic method changes, removes certain obsolete method changes, and provides limited transition rules. For federal income tax purposes, once a taxpayer has adopted or established a method of accounting, that method, whether proper or improper, must continue to be used until the taxpayer files a Form 3115, Application for Change in Accounting Method, to secure the Service’s consent to change to a different method. Taxpayers should carefully review the more than two hundred automatic method changes listed in Rev. Proc. 2017-30 to identify any opportunities to file automatic method change request to secure the Service’s consent to change to the proper or most optimal method of accounting in order to address any exposures, reduce taxable income and increase cash tax savings.
GJC would like to congratulate its team members, David Esshaki, Manager and Eric Bonk, Staff Accountant, whom were recent recipients of the GJC Five-Star Award.
The goal of a five-star corporate culture is to provide the highest level of communication and service both internally among team members, and externally to its valued clients. Additionally, GJC’s Five-Star Award suggests that the way we treat each other, our internal clients, translates into how we treat our external clients. This continues to be a philosophy that our firm fully embraces.
Congratulations David and Eric for your hard work and team dedication!
Managing Partner, Anthony McCree recently contributed to Crain’s Detroit Business.
The article focuses on new accounting rules for Nonprofit Organizations to take effect in December 2017.
Read the full article here!
If you have any questions, please feel free to contact us.
We hope that the contents of this issue of the GJC Advisor will provide you with valuable information. As always, if you have any questions or comments, please do not hesitate to share them with our team members.
This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.