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IRS Health Care Tax Tip 2016-61

July 20, 2016                                               Español

For purposes of the Affordable Care Act, an employer’s size is determined by the number of its employees. Employer benefits, opportunities and requirements are dependent upon the employer’s size and the applicable rules. If an employer has at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is an ALE for the current calendar year.  However, there is an exception for seasonal workers.

If you have at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, your organization is an ALE. Here’s the exception: If your workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were seasonal workers, your organization is not considered an ALE. For this purpose, a seasonal worker is an employee who performs labor or services on a seasonal basis.

The terms seasonal worker and seasonal employee are both used in the employer shared responsibility provisions, but in two different contexts. Only the term seasonal worker is relevant for determining whether an employer is an applicable large employer subject to the employer shared responsibility provisions.  For information on the difference between a seasonal worker and a seasonal employee under the employer shared responsibility provisions see our Questions and Answers page

See the Determining if an Employer is an Applicable Large Employer page on IRS.gov/aca for details about counting full-time and full-time equivalent employees. You can also see our Health Care Law: Highlights for Applicable Large Employers video on the IRS YouTube channel’s Health Care playlist.

PUBLISHED ON: JUN 3, 2016
 
 
 

Any business with aspirations for continued growth should take the time to create a five-year plan that can serve as a blueprint for building a strong, scalable business. The potential benefits of such a plan are wide-ranging--not just for what it can provide, but also for what it can help prevent. As Tony Peressini, CEO of GreenDrop, LLC, warns, "If you're not constantly looking to grow and adjust your plans according to the current business climate, you will most likely become stagnant."

A five-year growth plan is part of a larger strategic initiative that all organizations should undertake, advises Christopher A. Szpryngel, acting dean of the Malcolm Baldridge School of Business at Post University. A strategic plan acts as a roadmap for the future direction of a company. It involves setting organizational and departmental goals, describing the company's mission and vision, and measuring success and progress over time. The role of the five-year growth plan within that overall strategic plan is to "illustrate the organization's planned growth for each year, identifying what areas are expected to grow and at what rate," he explains.

Creating an effective five-year growth plan is not a solo project. "Plans created in isolation stand less chance of being adopted easily," notes David Clayton, executive chairman of SDL, a provider of global content management and language solutions. While owners and CEOs generally have a strong sense of the direction in which they'd like to take their companies, involving direct reports in developing the plan provides owners and CEOs with the value of different perspectives, and it promotes a greater sense of ownership throughout the organization when it comes to executing the plan.

The areas of focus in a five-year plan may vary depending on the nature of the business, the industry in which it competes, and its goals, but the key is to concentrate on issues related to scalability. "If we define scalability as continuing to maintain or increase profits while increasing revenues, then it's important to watch expenses," Szpryngel says. Two important areas are cost-of-goods-sold (including labor, materials, billable hours, overhead, etc.) and supply chain management.

Szpryngel suggests starting with a SWOT (strengths, weaknesses, opportunities, threats) analysis to determine where the company is today and its most important challenges and opportunities for growth. Next comes a market analysis to identify your target customers and determine how best to reach and convert them. That's followed by a competitive analysis: Who is your competition? What are their strengths and weaknesses? How much market share do they control, and how much can you take from them? Finally, you need resource assessment to determine whether you have the human capital resources and required skills to accommodate additional growth.

The outline of a typical five-year plan should look something like this:

  • Executive summary
  • Company profile
  • Growth goals
  • Market analysis
  • Customer analysis
  • Products/services marketing plan
  • Operations plan
  • Leadership team
  • Financial projections
  • Key performance indicators (KPIs)

Your five-year plan should be updated continuously because it is a dynamic document, Clayton stresses. "Change is constant, and plans need to be updated whenever things change. Although on the surface it might seem this could lead to mass confusion, the reverse is actually true. Frequently updating your plan based on current conditions and assumptions provides more order and predictability," he says.

July 20, 2016

IRS Says be Alert for Tax Scams Featured

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IRS Summertime Tax Tip 2016-01, July 1, 2016

Tax scammers work year-round; they don’t take the summer off. The IRS urges you to stay vigilant against calls from scammers impersonating the IRS. Here are several tips from the IRS to help you avoid being a victim:

  • Scams use scare tactics. These aggressive and sophisticated scammers try to scare people into making an immediate payment. They make threats, often threaten arrest or deportation, or they say they’ll take away your driver’s or professional license if you don’t pay. They may also leave “urgent” callback requests, sometimes through “robo-calls.” Emails will often contain a fake IRS document with a phone number or an email address for you to reply.

  • Scams spoof caller ID. Scammers often alter caller ID to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legit. They may use online resources to get your name, address and other details about your life to make the call sound official.

  • Scams use phishing email and regular mail. Scammers copy official IRS letterhead to use in email or regular mail they send to victims. In another new variation, schemers provide an actual IRS address where they tell the victim to mail a receipt for the payment they make. This makes the scheme look official.

  • Scams cost victims over $38 million. The Treasury Inspector General for Tax Administration, or TIGTA, has received reports of more than one million contacts since October 2013. TIGTA is also aware of more than 6,700 victims who have collectively reported over $38 million in financial losses as a result of tax scams.

The real IRS will not:

  • The IRS will not call you about your tax bill without first sending you a bill in the mail.
  • Demand that you pay taxes and not allow you to question or appeal the amount that you owe.
  • Require that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card or any specific type of tender.
  • Ask for credit or debit card numbers over the phone.
  • Threaten to bring in police or other agencies to arrest you for not paying.
  • Threaten you with a lawsuit.

If you don’t owe taxes or have no reason to think that you do:

  • Do not provide any information to the caller. Hang up immediately.
  • Contact the Treasury Inspector General for Tax Administration. Use TIGTA’s “IRS Impersonation Scam Reporting” web page to report the incident.
  • You should also report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add "IRS Telephone Scam" in the notes.

If you know you owe, or think you may owe taxes call the IRS at 800-829-1040. IRS employees can help you if you do owe taxes.

IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scamstaxpayer rights and more.


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Page Last Reviewed or Updated: 28-Jun-2016
 
 

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IRS Summertime Tax Tip 2016-07, July 18, 2016  

It can be hard to understand taxes. But the IRS provides many free products and services in Spanish and other languages on IRS.gov. Here are some ways that you can get help from the IRS this summer:

  • Get answers 24/7.  You can go to the IRS website at any time. It offers tax help in Spanish to both individuals and businesses. Help is also available in ChineseKoreanVietnamese andRussian.

  • Use IRS e-file. If you still need to file your 2015 taxes, you should choose to e-file your tax return. IRS e-file is safe, easy and the most accurate way to file. It is available through Oct. 17. Visit IRS.gov and choose the appropriate language pull-down from the top right-hand corner.

  • Get tax forms and publications. View and download several tax forms and publications. Many items are translated and available on the webpage for each language’s webpage.

  • Check out IRS2Go. The free IRS app is available in English and Spanish. Use it with an iPhone, iPad or Android mobile device. With IRS2Go you can:
    • Get your refund status.
    • Make a payment.
    • Find free tax preparation assistance.
    • Watch IRS YouTube videos.
    • Get tax news updates.
    • Follow the IRS.  

  • Request an interpreter. You can access oral interpreters in over 300 languages when interacting face to face or over the phone with IRS employees through the use of the OPI (over the phone interpreter services.

  • Get health care tax information.  The IRS website also has information about the Affordable Care Act tax provisions to educate individuals and businesses on how the health care law may affect them. You will find information about the law and its provisions, legal guidance, frequently asked questions and links to additional resources. Links to information in Spanish, Chinese, Korean, Vietnamese and Russian are available.

  • Use IRS online tools. Check the status of your refundmake a payment or use the Get Transcript tool. All provide step-by-step instructions in various languages.

  • Get the latest IRS news. You can get the most up-to-date IRS information in Spanish on the IRS website. Don’t forget to sign up to get Spanish tax tips by e-mail.

  • Connect with the IRS on Twitter.  Get the latest IRS tax news and information in Spanish through Twitter @IRSenEspanol.

IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scamstaxpayer rights and more.

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There are more than 800,000 Latina-owned businesses in the United States, and they represent the fastest-growing segment of small business owners. Yet many Latina business owners and would-be entrepreneurs are unaware of the many programs and services available to help them launch and successfully continue their business endeavors.

That is why the U.S. Small Business Administration and Latina media mogul and entrepreneur Nely Galán are joining forces and signing a first-ever agreement to help start, maintain, and expand Latina-owned businesses. The partnership will include providing information, training, and resources for aspiring Latina entrepreneurs.

Galán, the former President of Entertainment for the Telemundo network, is a founder of the non-profit group Adelante Movement, which trains and empowers Latinas to become entrepreneurs. She also has her own real estate development and investment company.

"The future is in women and small business and entrepreneurship. There is a lot of hidden money in America and we're going to help you find it through the SBA," said Galán during a ceremonial agreement signing in Washington, D.C.

"We all have an information gap. We don't know all the money that's out there for us. I myself didn't know about SBA loans," said Galán. "I didn't realize that so many non-profits provide training and the SBA partners with them. There is money out there but we don't know how to get it and it can be intimidating. Entrepreneurship is not grandiose; it's step by step and getting connected."

SBA Administrator María Contreras-Sweet says the agency can be a fountain of resources and information for Latina entrepreneurs. "The SBA has a great panoply of services that have proven successful to the community. We zeroed-out fees on loans under $150,000, we have recruited more credit unions, and we have changed the rules on underwriting to relax some of the underwriting. We have increased lending to the Hispanic community. We are at record-lending levels. The U.S. government had never been able to reach a simple goal of 5 percent contracting (to Latina-owned businesses), but we came in, hunkered down, put in more streamlining, and we've reached that goal and exceeded it. So now the five percent is the floor, not the ceiling. The numbers speak for themselves," said Contreras-Sweet, herself a Latina entrepreneur and business executive before joining the Obama administration two years ago.

"All of this work is building on each other and we think this initiative is going to be one more of those endeavors. This will be a significant partnership. We're going to create more jobs and have more impact and transform communities and brighten up lives."

WASHINGTON, D.C. (JULY 14, 2016)

BY BILLY HOUSE

 

(Bloomberg) House conservatives launched an effort Thursday to force a vote to impeach the IRS commissioner, but action on the motion could be delayed until September.

Representative John Fleming of Louisiana offered a privileged resolution to impeach John Koskinen, the Internal Revenue Service commissioner, after Republicans accused him of impeding an investigation into whether the tax agency improperly targeted conservative non-profits.

House leaders now have two legislative days to rule on whether the motion will indeed receive a vote, which could delay any action until September, when the House returns from its lengthy summer recess.

Fleming said on the House floor that his resolution has four separate articles of impeachment. Those include one accusing Koskinen of "engaging in a pattern of conduct showing he is unfit," including false statements to Congress. The Louisiana Republican said Koskinen’s false statements confused the investigation.

Republican leaders did not immediately comment on whether the resolution would receive a vote.
But moments before Fleming offered the resolution, Speaker Paul Ryan made a plea for the country to work toward healing.

"Our country is hurting, and needs to come together," he said on the House floor.

It is highly unusual for Congress to impeach an appointed administration official. The last time it happened was 140 years ago.

Senate leaders have also indicated they didn’t favor an effort to impeach Koskinen.