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IMRS Hot Issues

December 2014

Important Information Concerning the Affordable Care Act

  • A tax tip offers information on employer responsibilities under the Affordable Care Act
  • IRS provides information about the Affordable Care Act in Spanish
  • New IRS Publication 5172 (PDF) helps you find out if you qualify for a health coverage exemption

Cost of Living Adjustments

For tax year 2015, the Internal Revenue Service announced annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments. Among them, taxpayers may contribute up to $18,000 to their 401(k) plans in 2015. Search “COLA increases” on IRS.gov for more information on cost-of-living adjustments for other retirement related items.

Important Reminders Before Filing Season Begins

This might be a good time to review your e-file application information. Your application information should be updated within 30 days of any changes, such as names, address or telephone number. You should also check your EFIN Status by logging into your e-file application through e-services to make sure the summary of the volume and activity of the returns e-filed in the last two years matches your records. If you have any concerns or if you notice any discrepancies, call the e-help desk at 866-255-0654 (6:30 AM to 8:00 PM Central). Search “EFIN” on IRS.gov for frequently asked questions about EFINs.

Also, if you own or operate a Website(s) that collects, transmits, stores or processes taxpayer information, IRS requires you to register the URL(s) on your e-file application. If you have not previously registered, select the URL collection link on the e-file application information page menu to register. Online Providers must answer the self-certification questions annually beginning October 1 to ensure they comply with Publication 1345 IRS e-file security, privacy and business standards.

Application of One-Per-Year Limit on IRA Rollovers

The Internal Revenue Service issued guidance clarifying the impact a 2014 individual retirement arrangement (IRA) rollover has on the one-per-year limit imposed by the Internal Revenue Code on tax-free rollovers between IRAs.

The clarification relates to a change, announced earlier this year, in the way the statutory one-per-year limit applies to rollovers between IRAs. The change in the application of the one-per-year limit reflects an interpretation by the U.S. Tax Court in a January 2014 decision applying the limit to preclude an individual from making more than one tax-free rollover in any one-year period, even if the rollovers involve different IRAs. Before 2015, the one-per-year limit applies only on an IRA-by-IRA basis (that is, only to rollovers involving the same IRAs). Beginning in 2015, the limit will apply by aggregating all of an individual’s IRAs, effectively treating them as if they were one IRA for purposes of applying the limit.

More information on the rule change can be found on IRS.gov. Type “IRA” in the search box.

Incorrect fax number on Lt 3540-A, Initial Letter Inquiring about Unreported Alimony Income (IMRS Issue #1978)

Letter 3540-A will be revised to correct the fax number. In the interim, please use 855-235-8845 to fax or call 866-897-0161 when responding to this letter. This is not a direct fax number to the Centralized Authorization File unit. Information about filing power of attorney forms is available on IRS.gov, search term “CAF.”


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Page Last Reviewed or Updated: 26-Nov-2014