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HORNE Tax Alert
COBRA Premium Subsidy Extended
The Department of Defense Appropriations Act of 2010, signed into law by the President on December 19, 2009, extends the 65% COBRA premium subsidy that was created earlier this year in the American Recovery and Reinvestment Act.
The COBRA premium subsidy starts for the first period of coverage beginning after February 16, 2009, and continues until the earliest of these events:
1) the first date that the individual becomes eligible for group health plan coverage or Medicare coverage;
2) the date that the individual ceases to be eligible for COBRA continuation coverage; or,
3) as extended by the new legislation, the date that is fifteen months (formerly nine months) after the first day of the first month after the individual becomes eligible for the premium subsidy.
To be eligible for the COBRA premium subsidy, one must meet the following tests:
1) A covered employee whose coverage under the group health plan ends because of termination (other than gross misconduct) or reduction of hours of employment, or a beneficiary under the group health plan as either the spouse or dependent child of the covered employee;
2) Eligible for COBRA continuation coverage at any time from September 1, 2008 through February 28, 2010 (formerly December 31, 2009)
3) Elects COBRA continuation coverage.
The COBRA continuation payments and the government subsidy will continue to work as they did prior to this extension.
To further discuss the potential implications of this legislation on your specific circumstances, please feel free to call us.
Links
- Withholding the Additional 0.9 Percent Medicare Tax
- Government Officials Say Time is Running Out to Disclose Offshore Income
- IRS Issues Updated Directive to Exam Agents on Tangible Asset and Repair Regulations
- Identity Theft of Sensitive Employee Date is on the Rise
- Delaware enhances incentives for participating in unclaimed property voluntary disclosure
- Mississippi Passes Taxpayer Friendly Audit Legislation
- Work Opportunity Tax Credit
- Mississippi Supreme Court Grants Petition for Review in Alternative Apportionment Case
- Tennessee Becomes Latest State to Apply Due Process Clause as Effective Bar to State Taxation
- Fiscal Cliff Deal Extends and Reinstates Beneficial Key Cost Recovery Provisions
- Affordable Care Act and the Employer Shared Responsibility Tax
- Update on IRS Pilot Program for Truncated Taxpayer Identification Numbers
- Planning for the ATRA Impact on Trust Income Taxes
- Statute of Limitation Proposed Modification
- Use Tax: The Overlooked Liability
- Corporations' Uncertain U.S. Income Tax Positions
- Temporary Tangible Asset Regulations Effective Date Officially Delayed
- Federal Deposit Insurance Corporation Limits
- Now May Be the Time for Reverse Accounting Methods Planning
- New IRS Guidance on 3.8 Percent Investment Income Tax
- Tax Issues for S Corporations
- New Years Resolution
- Should you change from a pass through entity to a C corporation
- Final Tangible Asset Regulations Effective Date Delayed
- FUTA Credit Reduction
- Cliff Diving 101
- Estate Planning in a Low Interest Rate Environment
- Opportunity for Refund of FICA Taxes
- Look Beyond Labels to Determine Stock Redemption Treatment
- FICA Taxes on Severance Pay
- Effects on Mid-Sized Manufacturers and Their Owners of Dying Tax Cuts and Extenders
- Practical Considerations for Fixed Assets
- Physical Nexus Challenge
- Windows of Opportunity
- Tax Rules for 2013 are Completely Up-In-The-Air, Some Taxes Certainly Appear to be Headed Higher
- 2012-2013 Tax Guide Now Available
- Tennessee Gift Tax and Inheritance Tax
- Mississippi to Ramp up Delinquent Tax Collections
- Mississippi House Bill 970
- Special Series: Tax Legislative Insights
- Tax Update for 2011 Tax Filing Regarding 1099s
- 2011-2012 Tax Guide Now Available
- Mississippi Secretary of State’s Limited Liability Company (LLC) Annual Report Grace Period Ends December 1, 2011
- IRS Explains Tax Treatment of Employer-Provided Cell Phones
- Mississippi STEPS 2 Program--Registration Deadline Set for Sept. 30
- Expanded 1099 Reporting Requirements Repealed
- The 2010 Tax Relief Act
- Post Election Year-End Tax Planning
- Small Business Jobs Act
- Mid Year Tax Planning
- Foreign Bank and Financial Accounts
- Health Care Reform - Tax Provisions You Need to Know
- FICA Taxes on Severance Pay
- HIRE Act
- Estate Tax Uncertainty
- COBRA Premium Subsidy Extended 12.28.09
- Worker Homeownership and Business Assistance Act of 2009
- HORNE's 2009-2010 Tax Planning Guide
- IRA to Roth IRA Conversion
- Federal Tax Credits for Energy Efficiency
- ARR Act 2009 Financial Institutions
- ARR Act 2009 Individuals
- ARR Act 2009 Businesses
- Tax Law Benefits
- 2009 Mileage Rates
- New Economic Relief Act Benefits 2009
- Recent Developments that May Affect Your Tax Situation
- Disaster Victims Qualify for Tax Relief
- Take a Closer Look at Who is a 5 Percent Shareholder Under Section 382
- Stock Options on Preferred Stock Can Be Troublesome
News
Tax Tips: A Health Care Reform Primer
What seemed to be a long way away in the spring of 2010 is
standing on the doorstep knocking in the spring of 2013. Now is the
time to address what employers should know and what they should do
in preparation for January 1, 2014, when a majority of PPACA
legislation kicks in.
Filing Taxes: Lots of Changes, Procrastination
A host of tax changes from "fiscal cliff" legislation and a
later-than-usual start to filing season could spark more taxpayers
to file their returns this year before the traditional April 15
deadline.
Positioning to Deal with Change
An interview with HORNE Tax Partner John Scott about some of the
changes that are on the horizon for business of all sizes in the
coming months and years.
Employer “Pay or Play” Penalties Under the Patient Protection & Affordable Care Act
The IRS has released proposed regulations on the employer shared
responsibility provisions, commonly referred to as the "employer
mandate." Under Code Section 4980H added by the Patient
Protection and Affordable Care Act (PPACA), certain employers are
responsible for shared responsibility payments. These
payments have become known as "pay or play" penalties. The
proposed regulations provide long awaited guidance including
definitions and numerous rules for determining applicable employer
status, full-time employee status, and assessable
payments.
The New Reality: Taxes
This interview with HORNE Tax Partner John Scott, CPA, looks at
the reality of the tax situation post-fiscal cliff resolution.
HORNE Tax Alert: Mississippi House Bill 970
HORNE LLP is keeping our eye on Mississippi House Bill 970 for
our clients doing business in Mississippi. In its current
form, Mississippi House Bill (H.B. 970) addresses three primary
areas.
HORNE Tax Alerts
View up to date tax information from HORNE's tax team
2013 Mississippi Legislative Update: Statute of Limitation Proposed Modification
HORNE LLP is monitoring Mississippi House Bill 892 (H.B.892) and
Mississippi Senate Bill 2403 (S.B 2403) currently being considered
in this Legislative session. These bills as drafted would
address Mississippi's current open ended audit practice and require
mutual agreement in writing by the Mississippi Department of
Revenue (MSDOR) and a taxpayer to extend the time period for the
examination of the returns past the normal statute of
limitation.
Events
Federal Tax Update
January 23, 2013: Jackson, MS - Tax Partner John Scott and Tax
Supervisor Blair Waggoner present to the local Association of
Government Accountants and the American Society of Women
Accountants at their joint tax and internal control update
meeting.