The 2016 Statistics of Income Report for 2016 was released by the IRS on August 31.
The IRS has provided guidance for taxpayers who took out Federal student loans to finance attendance at schools owned by American Career Institutes, Inc. (ACI), and whose loans were discharged under the Department of Education’s Defense to Repayment or Closed School discharge processes. They will not have to recognize gross income as a result of the discharge. IRS further stated that these taxpayers won’t be required to increase their taxes or income to account for education credits under Code Sec. 25A, interest deductions under Code Sec. 221, or higher education expense deductions under Code Sec. 222 claimed in respect to payments made with proceeds of these discharged loans. In addition, prior debt relief guidance is modified to provide that IRS will not assert that creditors under the Revenue Procedure must file information returns and furnish payee statements as a result of the discharge relief provided. Revenue Procedure 2017-24 provides relief from discharge of indebtedness income for taxpayers whose Federal student loans, taken out to attend a school owned by the American Career Institutes, Inc., are discharged by the Department of Education under the “Closed School” or “Defense to Repayment” discharge process. The revenue procedure also provides that the IRS will … Read More
On Nov. 18, 2016, the IRS issued Notice 2016-70, which extends the due date for the 2016 requirement for employers and insurance providers to issue Forms 1095-B and 1095-C to employees and covered individuals. Insurers, self-insuring employers, other coverage providers, and applicable large employers now have additional time to provide health coverage information for 2016 to individual taxpayers in 2017. The deadline to issue these forms to individuals was January 31, 2017, but has been extended 30 days to March 2, 2017. While the due date to issue these forms to individuals is now later, the IRS encourages employers and other coverage providers to furnish statements as soon as they are ready. Important information for taxpayers: Due to these extensions, some individual taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2016 tax return. While the information on these forms may assist in preparing a return, they are not required. Taxpayers can prepare and file their returns using other information about their health insurance. Individuals do not have to wait for their Form 1095-B or 1095-C in order to file. The IRS has not extended the due dates for employers and providers to file Form 1095-B … Read More
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