Friday, April 14, 2017

Taxpayers outside the U.S. get till June 15 to file



The United States’ citizens and resident aliens who live and work outside the U.S. and Puerto Rico have until June 15, 2017, to file their 2016 returns and pay any taxes due. 
 
The special June 15 deadline also applies to members of the military, on duty outside the U.S. and Puerto Rico, who do not qualify for the longer combat zone extension. 

A statement from the Internal Revenue Service (IRS) urged taxpayers to “be sure to attach a statement to the return explaining which of these situations applies”. 

Though taxpayers abroad get more time to pay, interest, currently at the rate of four percent per year, compounded daily, applies to any payment received after April 18.

Taxpayers in Presidentially-declared disaster areas, members of the military serving in a combat zone and Americans living and working abroad get extra time to both file their returns and pay any taxes due.

The IRS generally provides relief, including postponing filing and payment deadlines, to any area covered by a disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA). 

Among other things, this relief includes extensions for relief workers, disaster area businesses and anyone whose tax records are located in the disaster area

Thursday, April 13, 2017

Medicaid: Franklin County Commissioners call for changes to proposed State budget


John O’Grady

With expected Statewide cut of $200million per year based on loss of revenue from Medicaid Managed Care sales and reduction of state reimbursement for legal counsel from indigent defendants, the elected officials from Franklin County, Columbus, Ohio met Thursday, Aril 13 to discuss the upcoming state biennial budget and proposals in it that would cut hundreds of millions of dollars from county budgets all over the state.  
 
The two main focuses of the meeting, which was called by Board of Commissioners President, John O’Grady and to which all county-wide elected officials were invited, were the loss of revenue from Medicaid Managed Care sales tax and the reduction of state reimbursement for legal counsel for indigent defendants.  

Together, the two cuts would amount to about a $23 million annual decrease in Franklin County’s budget, roughly equivalent to the combined yearly expenditures of the county Probate Court, Coroner, Auditor, Recorder, Treasurer, Municipal Court, Engineer, Court of Appeals, and Municipal Court Clerk.  

Statewide, the cuts are expected to top $200 million per year.

In 2016, federal regulators ended a tax structure that allowed the state to collect sales tax on services provided by Medicaid Managed Care Organizations, which included more than $200 million per year that went to counties and independent transit authorities.   

The state budget bill being debated in the statehouse now would address the losses to the state budget, but not those to counties or transit authorities.  The Franklin County Board of Commissioners passed a resolution in March calling on the state to provide an equitable and permanent solution for counties and transit authorities.

“The state is making itself whole from these losses,” said Board of Commissioners President John O’Grady.  “But leaving counties with a giant hole in their budgets.  There are proposals pending in the legislature that would address this problem, and we’re calling on our Central Ohio delegation, and all state legislators to look at those closely to find a way to continue funding the vital services that counties provide.”

Franklin County stands to lose about $21 million per year in the foregone sales tax revenues, about seven percent of all sales tax dollars, and COTA will lose millions more.  The cut to indigent defense reimbursement amounts to about $2 million more in lost funding.

“Behind every budget cut like this are real people who won’t be getting the services they need to live,” said Commissioner Marilyn Brown.  “These are our neighbors and, often, the services we provide them are at the behest of state government.  To further cut county budgets so that our most vulnerable residents are left without a functioning safety net, justice services, or economic development is just unconscionable.”

States have a constitutional obligation to provide legal defense to indigent criminal defendants, and Ohio originally opted to require counties to provide this service and committed to reimburse each county for 50% of the cost.  Provisions of recent state budgets have reduced this reimbursement percentage, and the current proposed budget would reduce it further, amounting to a loss of about $2 million per year for Franklin County.

“Having recently served as a state representative, I’ve seen this issue from both sides,” said Commissioner Kevin Boyce.  “I know that the state counts on counties to provide some of these important services but that they just can’t happen without monetary support from the state.  Communities all over Ohio are going to be without the funds they need, which means that Ohioans will suffer.   

In Franklin County, we’re committed to seeing that the state lives up to its obligations so that we can continue to provide the best services possible to our residents.”
At the meeting, representatives from the County Commissioners Association of Ohio provided a legislative update on the status of the current proposed budget and the proposed fixes to the pending budget cuts.  

The commissioners and other elected officials agreed to work with the legislature, and will be calling on local legislators to see to it that the budget holes are filled before the budget gets to the governor’s desk at the end of June.

Tuesday, April 11, 2017

IRS Urges Taxpayers to Choose Return Preparers Wisely

As the tax filing season deadline approaches, the Internal Revenue Service, IRS is reminding taxpayers to select who will prepare their 2016 federal tax return carefully. 

A statement from IRS said that with the filing deadline on Tuesday, April 18, "appointments with some tax professionals may be limited. 

"A reputable preparer will ask to see a taxpayer’s records and receipts and can help file an extension to give the taxpayer time to collect any missing documents," it added. 

The IRS urged taxpayers to avoid fly-by-night preparers who may not be available after April 18 and suggests checking the return preparer’s qualifications and history.  

The IRS Choosing a Tax Professional page has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers identify local preparers by type of credential or qualification.

All paid tax preparers must have a Preparer Tax Identification Number. They must sign the return and include their PTIN. Ask about fees before providing personal financial records and receipts. Review the return and ask questions before signing it.