ACA Interactive will guide you through provisions of the Affordable Care Act including coverage and exemptions, as well as program input steps.
Highlights for Tax Preparers of 2014 Returns
Reporting – Only clients that have purchased insurance through the Marketplaces will receive Form 1095-A, as shown in the table below. This means that many if not most of your clients that have insurance coverage will not receive a 1095-B or 1095-C for 2014. See table below.
What this means for you – The IRS recognizes this and as a result you as a tax preparer don’t have to obtain specific documentation from your clients to prove they have health care coverage. Various documentation as well as oral self-reporting of coverage by the taxpayer is admissible. Source: Excerpted from AICPA Webcast Nov.13, 2014, speaker William Smits from the IRS Wage & Investment Division.
IRS Penalty enforcement – The provisions of the Affordable Care Act prohibit the IRS from levies or liens to collect any individual shared responsibility payment. Source: IRS Question 26
What this means for your client – The IRS can only offset the liability against a tax refund that may be due to a taxpayer.
A handy ProSeries ACA Quick Reference PDF can be downloaded here.