Line items

IRS to contact late payroll tax remitters ... PPACA employer issues addressed ... Standard mileage rates lower in 2016

IRS to contact late payroll tax remitters

In News Release 2015-136 in December, the IRS stated it would contact employers whose payroll withholding tax remittances appear to be incomplete and/or late. The Service said it would monitor the Electronic Federal Tax Payment System for patterns indicating late or partial deposits and intervene in some cases before an employment tax return is filed, which for most employers is required quarterly. The release did not say how late a deposit would have to be before the IRS makes contact, which could occur by letter, automated phone message, or in some cases, an in-person phone call or visit by a revenue officer.

PPACA employer issues addressed

In Notice 2015-87, the IRS provided additional guidance on employer responsibilities under the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148. It includes the "market reform" provisions' effect on health reimbursement arrangements (HRAs) and other employer payment plans. The notice explains, for example, that HRA amounts can be used to purchase excepted coverage such as dental insurance without running afoul of the laws but cannot be used to reimburse the medical expenses of a spouse or dependent of an employee with self-only coverage (for more, see "Tax Practice Corner: Health Reform Prohibits Most Reimbursement Plans," JofA, Sept. 2015, page 78). The notice also provides guidance on application of the Sec. 4980H large-employer mandate to provide coverage and penalty relief for related reporting of coverage for 2015.

Standard mileage rates lower in 2016

Optional standard mileage rates for automobiles' deductible business use, or for medical or moving purposes, went down in 2016 from the year before, as shown in the accompanying chart (Notice 2016-1).

Standard mileage rates, 2016

The rate for service to a charitable organization remains 14 cents a mile under Sec. 170(i).

The portion of the business standard mileage rate that is treated as depreciation is unchanged in 2016 from 2015 at 24 cents per mile.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.