The rules have changed for Health Reimbursement Arrangements (HRAs). Business owners who have such plans should scrutinize them carefully to ensure they comply with important reforms enacted as part of the Affordable Care Act (ACA).

Health reimbursement arrangements (HRAs) are tax-advantaged group health benefit plans that reimburse participants for qualified medical care expenses. Prior to 2014, many employers used HRAs as a way to help employees purchase individual insurance coverage. For example, an employer may not have offered health insurance coverage, but instead contributed $4,000 each year to an HRA for each employee. The employee could then use some or all of the funds in the HRA to purchase an individual health insurance policy. The employer was able to deduct the $4,000 as a business expense, but the employee wasn’t required to report that amount as a taxable benefit.

The rules have changed. These plans can still be a great “win-win” for employer and employee, but the plans must be designed with great care. What worked a few years ago may no longer work today, and failure can lead to disastrous penalties. Please contact us to ensure that your HRA plan is in compliance with regulations.

On Tuesday, December 6th, Campbell Wealth Management of Old Town will hold a tax education event featuring Ross & Moncure’s CPA Brian Davis. All Campbell Wealth Management and Ross & Moncure clients are invited to attend. Campbell Wealth Management is a local boutique financial advisory specializing in high-net-worth individuals in or approaching retirement. Our firms share a commitment to working toward retirement certainty for our clients.

The purpose of the event is to prepare clients for the 2016 financial year-end. We will cover (1) strategies to minimize annual income taxes, (2) estate planning, and (3) 2016 legislative changes that will affect your tax bill.

Please find the full event details below:
Location: Crowne Plaza Old Town, Washington Room (second floor), 901 N Fairfax St, Alexandria, VA 22314
Time: 5:30PM to 7PM
RSVP to Rachel at r@rossmoncure.com

On Thursday, October 13th, ABC 7-WJLA news station will run a segment called “Ask the Financial Advisor,” a live phone bank hosted by one of ABC 7’s reporters, and viewers of ABC 7 can call in to ask a panel of advisors any questions they may have about managing their money. Our own Luci Weigel will be one of the advisors on the segment!

The phone bank will run from 4:30pm – 6:30pm on Thursday, October 13^th, and the number to call is (703) 236-9220.

Of course, this is not Luci’s first brush with television fame. She was recently on another WJLA segment providing tips on how one might successfully take a “temporary retirement.” Yes, there is such a thing as a temporary retirement, and Luci has some useful advice to those who might be tempted to take one.

If you owe Uncle Sam more than $50,000 in back taxes, don’t plan on fleeing the country – or taking a vacation overseas.

Tucked away in the Fixing America’s Surface Transportation (FAST) Act is a provision that allows the revocation of passports held by American taxpayers that owe more than $50,000 in delinquent federal taxes.

The $50,000 number is indexed for inflation, so it will grow over time.  The threshold includes the sum of both the tax owed and the interest and penalties that have accrued on the tax debt.  Once a notice of lien or levy has been issued, the Department of Treasury will certify the delinquent debt to the State Department.  The State Department can then find the taxpayer ineligible to hold a U.S. passport – in other words, they can revoke an already-issued passport, deny future applications for passports, and reject renewal applications.

Legal immigrants and visa-holders have faced similar penalties for non-payment for years, as visas and green cards can be revoked for non-payment of tax debt.

To prevent revocation of travel documents, clients who are unable to pay their tax balance due in full should request an installment agreement with the IRS.  Debtors who have a valid installment agreement in place – and who are complying with the payment schedule – will not be subject to revocation of their travel document.

Our firm stands ready to assist when a reversal of financial circumstances results in tax debt that exceeds our clients’ ability to pay.  If you need help establishing an installment agreement with the tax authorities, don’t be embarrassed – simply let us know, and we will be happy to have a private discussion of the avenues available to help you to meet your tax obligations.