Health Care Reform

RIA’s Complete Analysis of the Tax and Benefits Provisions of the 2010 Health Care Act as Amended by the 2010 Health Care Reconciliation Act

The following sections contain RIA’s Complete Analysis of the Tax and Benefits Provisions of H.R. 3590, the Patient Protection and Affordable Care Act, as signed into law by the President on Mar. 23, 2010 ( PL 111-148, 3/23/2010 ), as Amended by H.R. 4872, the Health Care and Education Reconciliation Act of 2010, as signed into law by the President on Mar. 30, 2010 ( PL 111-152, 3/30/2010 . H.R. 3590, the Patient Protection and Affordable Care Act, is generally referred to in the Analysis as the “2010 Health Care Act,” while H.R. 4872, the Health Care and Education Reconciliation Act of 2010, which amends the 2010 Health Care Act, is generally referred to in the Analysis as the “2010 Reconciliation Act”. Read more

Loan Modification and Foreclosure Rescue Scams – Report from TIGTA

FOR IMMEDIATE RELEASE
June 17, 2010

FinCEN Analysis: Foreclosure Rescue Scam Reports Increase
Nature of Foreclosure Rescue Scams Shifts

VIENNA, Va. – The Financial Crimes Enforcement Network (FinCEN) today
released its first analysis of suspicious activity reports (SARs) containing
information about potential foreclosure rescue scams. The report,
<http://www.fincen.gov/news_room/rp/files/MLFLoanMODForeclosure.pdf> Loan
Modification and Foreclosure Rescue Scams – Evolving Trends and Patterns in
Bank Secrecy Act Reporting , involved an analysis of more than 3,500 SARs
filed from 2004 through 2009, of which the great majority, 3,000, were filed
last year. Additionally, FinCEN today also provided updated guidance
<http://www.fincen.gov/statutes_regs/guidance/html/fin-2010-a006.html> to
the financial industry concerning new scam techniques that financial
professionals should watch for and report. Read more

Gotcha – Use of TurboTax Is Not a Defense

The Tax Court rejected a taxpayer’s argument that their use of TurboTax to prepare their returns caused them to misstate their income, which resulted in an IRS assessment and an accuracy related penalty. In the case Aileen Yat Muk Lam , TC Memo 2010-82 (Tax Ct.) the wife argued that they consistently filled out their tax returns using TurboTax and she consistently confused capital gains and losses with ordinary income and expenses. The court rejected her argument noting that “tax preparation software is only as good as the information one inputs into it.” Just one more reason to use a professional tax preparer!

Health Savings Accounts

Health Savings Accounts (HSAs) have become a popular option in the medical benefits arena. Most people are familiar with the basics of how the HSA works- you contribute money into the account, get a deduction for the contribution, earn tax free growth and get tax free reimbursements for qualified medical expenses. However, there are some details you should know about HSAs or you may find yourself making non deductible contributions or subject to penalties. Read more