IRS Now Accepting ITIN Renewal Applications

This is a reminder that the IRS has begun accepting renewal applications for individuals whose ITINs will expire at the end of 2016.

Under the Protecting Americans from Tax Hikes (PATH) Act of 2015, the following ITIN holders must renew their ITIN before they file their 2016 federal tax return during the upcoming 2017 filing season:

• Have not used their ITIN on a tax return for the last three consecutive years; or
• Have an ITIN with the middle digits of 78 or 79.

The IRS recently sent letters to taxpayers with the affected middle digits informing them that they need to renew their ITINs.

To renew an ITIN, a taxpayer must complete Form W-7 and submit all required documentation to the IRS either by mail, through a Certified Acceptance Agent, or in person by making an appointment at an IRS Taxpayer Assistance Center. For renewals, a completed federal income tax return does not need to be attached to the Form W-7.

For more details on which taxpayers need to renew their ITIN as well as the process for renewing ITINs see the following on the IRS website:

• IRS news release of October 6 – IRS Now Accepting ITIN Renewal Applications
• IRS Form W-7 instructions

Additional Affordable Care Act Related Information Returns that Individuals May Receive for Health Care Coverage for 2015

Beginning in early 2016, individuals will begin to receive new Affordable Care Act (ACA) related information returns regarding their 2015 health insurance coverage. It is important to note that the following two information forms are for informational purposes only and are not needed to complete an individual’s 2015 federal tax return. The purpose of these forms is to inform individuals that they had health insurance for 2015, who was covered by their policy, and how many months they had coverage.

Form 1095-B (Health Coverage)
All health insurance issuers (insurance companies), self-insured employers, government agencies, and other entities that provided health insurance coverage to individuals during 2015 will be required to send each individual they covered a Form 1095-B (Health Coverage).

All individuals that had health insurance coverage during 2015 will receive a Form 1095-B in early 2016. If the individual had coverage from more than one health insurance provider during the year they will receive a Form 1095-B for each one.

The Form 1095-B will give the individual health insurance policy holder the following information:

• The name, address, and SSN of each person covered by the policy
• The number of months each person was covered during the year
• The name of the health insurance issuer
• Name of Employer (if it is employer sponsored coverage)

The Form 1095-B is proof that the taxpayer and his/her dependents were covered by health insurance for all or part of 2015.

None of the information that is on the Form 1095-B is entered on the 2015 federal tax return. Therefore, it is not necessary for an individual to have received a Form 1095-B in order to complete and file their 2015 federal tax return.

Form 1095-C (Employer Provided Health Insurance Offer and Coverage)
All individuals that worked for a company that was considered an applicable large employer (employed 50 or more full-time equivalent employees) and received or were offered health insurance coverage during 2015 will receive a Form 1095-C (Employer Provided Health Insurance Offer and Coverage) in early 2016 from their employer.

The Form 1095-C will inform the employee of the following:

• Name, address, and SSN of the employee
• Name and SSN of the employee’s dependents that were covered and for which months they were covered during 2015
• Name, address, and EIN of Employer
• For those who elected not to receive coverage, information on the coverage offered

The Form 1095-C is proof that the taxpayer and his/her dependents were covered by health insurance for all or part of 2015 by their employer.

None of the information that is on the Form 1095-C is entered on the 2015 federal tax return. Therefore, it is not necessary for an individual to have received a Form 1095-C in order to complete and file their 2015 federal tax return.

CrossLink 1040 is Live and Available for Download!

We are happy to notify you that CrossLink 1040 Professional Tax Software for Tax Year 2013 is LIVE and available for download! Go to the CrossLink Customer Portal to download it today.

Contact a CrossLink Team Member today to learn more.

IRS Resource to Help You Understand IRS Notices and Letters

The IRS website contains a helpful page called Understanding Your IRS Notice or Letter. This page gives the taxpayer and/or tax preparer valuable information about the different notices and letters that the IRS may send to the taxpayer regarding a federal return that they filed with the IRS.

Here is what you will find:

• Listing and link to some of the more common IRS notices with information on:
• What the taxpayer needs to do
• What the taxpayer may want to do
• Answers to common questions
• Tips for next year
• Example of what the letter looks like
• Listing and link for some of the letters a taxpayer may receive which provides information on:
• What the letter is telling the taxpayer
• What the taxpayer needs to do
• What happens if the taxpayer takes no action
• Who the taxpayer should contact if they have questions
• A list of eight things every taxpayer should know if they receive a notice
• How to identify where the number of the notice is located on the notice
• Link to a list of other individual filer notices that the IRS may send regarding their tax return
• Link to a list of other business filer notices that the IRS may send a business regarding their tax return