Alerts & Bulletins
IRS Expands Cafeteria Plan Allowable Election Changes and Other Miscellaneous Guidance
Released by the Internal Revenue Service (“IRS”), the following Notices address various issues that affect employer-sponsored health coverage: IRS Notice 2014-55, Additional Permitted Election Changes for Health Coverage under § 125 Cafeteria Plans: Effective September 28, 2014, employees now have additional opportunities to enroll in Marketplace coverage that were previously limited under IRC §125 cafeteria plans. IRS Notice 2014-56, Update to the Patient Centered Outcomes Research (PCOR) Fund Fee: For plan years ending on or after October 1, 2014, and before October 1, 2015, the PCOR fee will increase to $2.08. IRS Notice 2014-49, More Guidance on the Look-Back Measurement. Read More.
Is Your Inherited IRA Protected in Bankruptcy?
Is your inherited IRA protected in bankruptcy? Not anymore, according to the U.S. Supreme Court (“Supreme Court”). In the past, inherited IRAs were deemed to be retirement funds to the beneficiary of the IRA and protected from bankruptcy claims. However, on June 14, 2014, in a unanimous decision (Clark et ux v. Ramemaker, No. 13-299), the Supreme Court ruled that funds held in inherited IRAs are not retirement funds and must be included in a bankruptcy estate. This development could affect your retirement and tax planning. The Supreme Court decision was based on three legal characteristics: The beneficiary of an. Read More.
Preparing for Health Coverage Reporting Requirements
If you are an employer that sponsors a health plan for employees, you will be required to file new Internal Revenue Service (“IRS”) Forms 1095-B, Health Coverage, and 1095-C, Employer-Provided Health Insurance Offer and Coverage, in early 2016. Although filing deadlines are more than a year away, processes and procedures for collecting the required information should be adopted beginning in January 2015. The IRS has released draft forms, transmittals, and instructions. Final forms and instructions are expected before the end of the year. The new forms will be used to report health coverage offered or provided to employees and other. Read More.
Benefits of Appointing a Receiver in Disputes Over Closely-Held Assets
By: Harry Shechter , CFE & Matthew Druckman , CPA, CFF, CIRA Receiverships are generally thought of as a creditor’s remedy for protecting a creditor’s rights and its ability to collect obligations from a party. Other circumstances that facilitate the use of a receiver include divorce matters and shareholder disputes in the case of closely-held assets. A receiver can assist parties in finding solutions to their disagreements or facilitate a transfer of the assets from one party to the other. When there is an asset to protect or manage on an interim basis, bringing in a receiver may result in both parties obtaining better,. Read More.
By: Bruce Yasukochi , CPA, PI, CFE, CFF, CITP; Director, Fraud & Forensic Services “Habitual criminal” and “Certified Public Accountant” (CPA) are (thankfully) not phrases that one hears used in concert with one another very often. However, the enactment of private investigations laws by most states (at last count, more than 40) has given CPAs – and in particular, forensic accountants – pause to consider whether the pursuit of our trade has possibly taken us beyond the legal boundaries. At issue is whether accountants engage in activities which are governed by the states’ private investigation statutes, and as a consequence require the accountant. Read More.
Benefits of a Neutral CPA in a Divorce
By: Philip J. Shechter , CPA*/ABV, CVA Traditionally in a divorce, each side hires a CPA to determine the separation of finances. As a result, dueling accountants are likely to disagree and present differing sets of facts, numbers and assumptions, increasing the likelihood of a trial. To combat the issue, more family law attorneys, as well as judges, recommend hiring a single, neutral CPA. Many CPAs believe offering neutral CPA services to existing clients who decide to divorce poses a conflict of interest. It may be the case that the parties are far better served by hiring a practitioner who has worked with. Read More.
Treasury Regulations Permit Lower Required Minimum Distribution
Announced by the U.S. Treasury Department, the final regulations for Qualifying Longevity Annuity Contracts (QLACs) have been released. To be issued by insurance companies, QLACs lower required minimum distributions (RMDs) after age 70 ½ and provide guaranteed income for life. Cherry Bekaert Benefits Consulting’s alert on these regulations can be read on the Cherry Bekaert Benefits Consulting site.