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Tax & Accounting

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UPDATE: Tax Day MOVED from April 15 – July 15; Includes filing ad payments.

Today, Friday, March 20, Secretary of the Treasury Steve Mnuchin tweeted: “We are moving Tax Day from April 15 to July 15,” Mnuchin said. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” "Corporations can get an extension on up to $10 million, and individuals can defer up to $1 million of tax liability," and Mnuchin said Tuesday at a news conference. This includes 1st quarter 2020 federal estimated tax payments normally due 4/15/2020.  These payments can be deferred to 7/15/2020 without an estimated tax payment penalty, SIMA continues to monitor decisions by the...

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Please be advised: SIMA Response to COVID-19

In response to COVID-19 we will be transitioning our team to a remote working policy for the foreseeable future. At this time a limited staff will remain at our office to provide essential operations. Our service to you as well as the health and safety of our team is our primary concern throughout this time. Our team has the technology and resources required to effectively work remotely and will continue to provide you the service you need. Our Accounting team plans to remain at the office until further guidance is provided by the Internal Revenue Service (IRS) on the possible extension...

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It’s Time! Tax Deadlines Looming!

2019 Tax Return Due Dates for Business Types Sole proprietorship and single-member LLC tax returns on Schedule C (with the owner's personal tax return): April 15, 2020. Partnership returns file a partnership tax return on Form 1065 with Schedule K-1 for each partner: March 16, 2020. Multiple-member LLC returns filing as partnerships file on Form 1065 for the partnership and give Schedule K-1 to each member: March 15, 2020. S corporation returns must be filed on Form 1120 S with Schedule K-1 for each member: March 15, 2020. For corporations (not S corporations) with a fiscal year endings other than...

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Cadillac Tax and Other Key ACA Taxes Repealed

The federal spending bill signed into law at the end of 2019 repealed three taxes and fees under the Affordable Care Act (ACA): The Cadillac tax The medical devices excise tax The health insurance providers fee The Cadillac Tax The Cadillac tax is a 40% excise tax on high-cost group health coverage. Its effective date was previously delayed several times. This tax is now fully repealed, beginning with the 2020 tax year. The Medical Devices Excise Tax The medical devices tax is a 2.3% excise tax on the sales price of certain medical devices. This tax is fully repealed beginning in 2020. Health Insurance Providers...

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Section 6056 Employer Reporting Guide

Section 6056 reporting is the required reporting to the IRS of information relating to offers of health insurance coverage by employers that sponsor group health plans. A statement disclosing information about the offer of coverage must also be furnished to full-time employees. This guide is intended to provide information for employers on the Internal Revenue Code (Code) Section 6056 reporting requirements. Topics covered in this guide include: Applicable large employers (ALEs) that are responsible for reporting under Section 6056 The forms that are used to accomplish the Section 6056 reporting The information an ALE must provide to its full-time employees and...

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Background Information Regarding Section 6056

The Affordable Care Act (ACA) created reporting requirements under Code Sections 6055 and 6056. Under these rules, certain employers must provide information to the IRS about the health plan coverage they offer (or do not offer) or provide to their employees. Each reporting entity must annually file all of the following with the IRS: A separate statement (Form 1095-B or Form 1095-C) for each individual who is provided with minimum essential coverage (for providers reporting under Section 6055), or for each full-time employee (for ALEs reporting under Section 6056); and A transmittal form (Form 1094-B or Form 1094-C) for all...

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IRS Releases Final Forms and Instructions for 2019 ACA Reporting

The 2019 ACA Reporting is Due in Early 2020 The IRS has released final 2019 versions of Forms 1094-C, 1095-C, 1094-B, and 1095-B that employers will use in early 2020 to report on the group health insurance coverage they offered during the 2019 calendar year. Instructions on how to complete Forms 1094-C and 1095-C and Forms 1094-B and 1095-B for the 2019 calendar year have also been released. The 2019 forms and instructions are substantially similar to the 2018 versions. Note that Section 6055 reporting continues to be required, despite the fact that the individual mandate penalty has been reduced to $0....

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DOL Issues 2020 Form W-4

Employers Must Begin Using the New Form Jan. 1 On Dec. 5, 2019, the Internal Revenue Service released an updated version of its W-4 form, also known as the “Employee’s Withholding Certificate.” Employers use IRS Form W-4 to determine each employee’s federal tax withholdings. The new form is intended to harmonize tax withholding declarations with the Tax Cuts and Jobs Act, which affected individuals for the first time during the last tax filing season. Employees may complete a new W-4 each year or each time they experience a change in their personal financial situation. However, the new form does not invalidate prior...

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Business Mileage, Medical and Moving Rates Decrease

On Dec. 31. 2019, the Internal Revenue Service (IRS) issued the 2020 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 57.5 cents per mile driven for business use (down from 58 cents in 2019); 17 cents per mile driven for medical or moving purposes (down from 20 cents in 2019); and 14 cents per mile driven in service of charitable organizations (unchanged). Click here...

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2019 Tax Law Change Update

Highlights of spending package’s tax law changes The federal government spending package titled the Further Consolidated Appropriations Act, 2020, does more than just fund the government. It extends certain income tax provisions that had already expired or that were due to expire at the end of 2019. The agreement on the spending package also includes the Setting Every Community Up for Retirement Enhancement (SECURE) Act. Let’s look at some of the highlights. Extenders Here are some of the most widely relevant breaks that have been extended through 2020: The exclusion from gross income of discharge of qualified principal residence indebtedness, The treatment of...

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