office 781-219-4206
fax 781-874-9240

The Medford Tax Experts, Inc.

425 High Street, Medford, MA 02155

What we mean when we say "Relax and let an expert do your tax" is that taxpayers are trying to do the right thing and file an accurate tax return. Allow us to help ease the stress.

Changes in Regulations


Alphabet Soup


ACA - The Affordable Care Act is also known as ObamaCare. The IRS requested $400 million dollars to implement and administer this legislation. Congress authorized no money. As a result spending cuts were made in the everyday operations of the IRS. There are fewer full time and seasonal employees to do the normal work.


FATCA - The Foreign Account Tax Compliance Act went into effect this summer. The IRS is now assigned to supervise worldwide banking and investing activities. You can just imagine how difficult the challenge with a budget that is 7% less than in 2010.


AFSP - The Annual Filing Season Program was launched this fall in response to a court decision that ruled against IRS supervision of tax preparers. Tax Preparation is an unregulated industry. Criminal filing fraudulent tax returns have stolen billions of dollars from the US Government. The IRS has shut down national tax preparation offices and jailed perpetrators. Well intended tax preparers by being ill-informed might also victimized tax payers. The IRS seeks to recognize a higher level of tax preparation.

 

New Tax Forms

Taxpayers will need to determine how forms 8962, 8965, 1095C, 1095B and 1095A affect their tax return.  These are the forms that are used to report your compliance with federal health care mandates.


Foreign Income and Assets

Americans with investments overseas are subject to several complex reporting requirements.

FBAR, (Report of Foreign Bank and Financial Accounts), is now FinCEN, (Financial Crimes Enforcement Network). New forms exist as well as new mandates.

  • Reporting must be online
  • Go to www.BSAEfiling.FinCEN.Treas.Gov for more information


Late Filers Pay Penalties & Compounded Interest

Late Filers who owe federal tax pay a failure to file penalty and a failure to pay penalty.

  • Failure to File is ten times more than Failure to Pay. If you know you owe, file your tax return on time!
  • Failure to Pay Penalty is 0.5% per month of the unpaid tax. Any delay will cost you more money.

If you want to pay the IRS in monthly payments, you can apply for a payment agreement. There is an additional fee to set up the agreement.

 

Failure to File is a Felony

Any taxpayer who willfully fails to file tax returns for three years within any five year period after 2014 is subject to a criminal penalty of $250,000 and a prison term up to five years.  This conviction would be classified as a felony penalty.