If you’ve been aware of what was happening in the year 2015, there were no such major changes in the tax law. That was actually good news for the taxpayers as they didn’t have to worry about any new laws and how they would affect their financial decision. Nevertheless, Congress actually managed to make a few relatively small changes to tax law. There is always a continuous implementation of various kinds of tax measures and Uncle Sam is increasing their efforts to stop identity theft regarding to US tax issues and new tax deadlines. This clearly means that majority of the taxpayers will encounter a few US tax issues in the year 2016. Let’s take a look at them so that you don’t have face any problem this year.
4 US Tax Issues of 2016
1). Trigger off the identity thieves
Keeping in mind the way in which identity thieves have intruded into the US tax system, the IRS has introduced a Security Summit in the month of March, 2015 to give up ideas in which they could stop such activities of the crooks. 7 months later, the state tax officials announced a bunch of steps to bring into control tax identity theft and related refund fraud. To be more specific, 20 new pieces of data would be used in order to validate tax returns in 2016. Through this exchange of information, taxpayers would be able to validate the authenticity. However, the only thing to note is that this would slow down the processing of IRS’s returns.
You May Like to Read: 5 Latest Cyber Security Strategies to Protect Online Business
2). New deadlines for tax
Hey you taxpayer, make sure you mark your calendar! Mark the way in which the days fall in 2016 April and you will see that the usual mid-month tax filing deadline will fall a bit later than other years. On the 15th of April, in Washington DC, the Emancipation day is usually celebrated and according to the federal law, any holiday in the capital of the nation will also mean holiday of the offices. Hence this automatically pushes the annual date of 1040 filings to April, 18th.
3). Obama care tax penalties
Either have your health insurance policy or be prepared to pay off the price during tax filing due to the norms of the Affordable Care Act. The price will keep rising with time. The individual penalty of payment for not owning the minimum health insurance coverage is entirely based on each month on the total number of uninsured family members within your household and the income. The maximum penalty for 2016 taxpayers will skyrocket and reach up to $2085.
4). International money will become tough to hide
Reliable and trustworthy tax havens will become tough to find. As per the Foreign Account Tax Compliance Act or FATCA, various foreign banks were boosting the US taxpayers to hide their international assets abroad. But now FATCA needs their financial firms to report all account data of their US account owners or else face stiff penalties.
So, are you already on with your online tax preparation? If you don’t think you can carry on with the accounting services on your own, make sure you seek tax advice from experienced and professional income tax consultants and get their advice.
Sam is a financial writer with adept knowledge on the contemporary financial issues. He contributes his posts to various financial sites, participates in forums and communities and loves to share his knowledge. Currently he is specializing in online tax preparation since Americans seem to be lagging behind in this periphery.