2016 Tax Filing Highlights

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elementscpa-calm-taxOur goal is that good planning makes your 2016 tax filing a non-event.

If you’re a member of The Elements Circle, letters with a simple overview and checklist are already on their way to you (additional copies linked below). And here, we’d like to share some tax law updates you may find helpful –


For businesses

  • The tax deadline for Partnership filings changed to Mar 15 (from Apr 15), and C-corporations changed to Apr 15 (from Mar 15) — effectively, they traded places. The accelerated equipment write-off is finally permanent for up to $500,000 in equipment purchases (given total purchases were less than $2.01 million). Penalties for late/non-filing of Form 1099s increased from a max of $50 per return, to $530 per return (yikes!). Income subject to Social Security tax jumped from $118,500 to $127,200, meaning S-Corp election can be even more valuable. And lastly, right at the end of the year a tax law was passed allowing business to provide Health Reimbursement Arrangements (HRA’s) without violating the ACA — a big deal.


For individuals

  • The IRS continues to balance refund processing times versus fraudulent filings — preparer due diligence requirements increased, some refunds may still be delayed, but they seem to be getting better. If you have financial accounts overseas that must be reported, the new deadline for the FinCen 114 form is Apr 15 (from Jun 15). The IRS is increasing attention to the “sharing economy”, so AirBnB and Uber owners need to be sure to report accurately. And qualifying for education credits on tuition is a little tighter — the IRS wants to be sure you’re only claiming tuition actually paid during the calendar year, for that calendar year’s classes, or a semester beginning within the first three months of the following year.


Our Elements Flow – Tax Preparation gives a great a visual map for what steps your return will take, and of course, don’t hesitate to contact us at any point with questions.

Here’s to a smooth 2016 tax filing!