New Federal Taxes for 2014

Here is a list of the major new taxes for 2014. Remember, these are new for the 2014 tax year.

• Tangible Property Regulations: Final capitalization regulations issued on tangible property, generally applicable to tax years beginning on or after January 1, 2014.

• Cafeteria Plans: Reimbursement for the premiums for coverage under any qualified health plan offered through a state exchange may be made through a cafeteria plan if the employer is a qualified employer.

• Health Insurance — Individuals: All non-exempt U.S. citizens and legal residents are required to maintain minimum essential health insurance coverage, or pay a penalty tax on their individual income tax return. Healthcare exchange open enrollment for 2014 ends for the individual market on March 31.

• HRAs and Market Reforms: Market reform rules that prevent group health plans from establishing a lifetime or annual limit on the dollar amount of benefits for individual participants in the plan.

• Premium Assistance Credit for Low-Income Individuals: Low-income individuals and families may qualify for a premium assistance credit to help subsidize the purchase of health insurance.

• Premium Assistance Cost-Sharing Subsidy for Individuals with High-Deductible Plans: Individuals with household income between 100% and 400% of the federal poverty level (FPL) may qualify for a cost-sharing subsidy to reduce the maximum annual deductible and out-of-pocket expense limits for high-deductible health plans.

• User Fees: The IRS increased user fees for installment agreements to $120 and offers in compromise to $186.

• FATCA Reporting: Time to report under FATCA postponed from January 1, 2014, to July 1, 2014.

• FBAR Reporting: Electronic filing of Form TD F 90-22.1 required through the Bank Secrecy Act e-filing system. For certain individuals with signature authority over but no financial interest in one or more foreign financial accounts deadline to file extended from June 30, 2014, to June 30, 2015.

Source: Bloomberg BNA

Please also see: Major Tax Breaks that Expired in 2013