Taxation & Estate Planning

More IRS News

By Darrin Mish

IRS Organizes Free Information Session

The IRS has been offering a free information session to enable the taxpaying public to understand their eligibility for the Health Coverage Tax credit. This credit is aimed at making health care affordable for everyone. The session is going to be held on January 12, from 10 a.m. to 4 p.m. at the Atlanta Marriott Northwest.

Under the Health Coverage Tax credit (HCTC), eligible taxpayers would receive a credit on a monthly basis when their insurance premiums become due or every year when they file their tax returns. The HCTC is paid in full as a refundable credit regardless of how much taxes you may owe. With the HCTC in place, you may end up paying only 20% of your health insurance premiums each month.

Thousands of taxpayers are eligible for the HCTC. You would be eligible for the HCTC if, for example, you are a senior citizen between 55 and 65 years old who receives benefits under the Pension Benefit Guaranty Corporation (PBGC) or a Labor Department certified displaced worker eligible for Trade Readjustment Allowance under the Trade Adjustment Assistance Act (TAA).

The HCTC was a program started in 2002 but expanded in 2009 as part of the American Recovery and Reinvestment Act (ARRA). To give out the credit, the program partners with various federal and state bodies and the respective Health Plan Administrators (HPA) of the states.

For more information on the IRS session on HCTC, call (866) 628-HCTC or go to www.irs.gov/individuals/article/0,,id=109915,00.html.

USDA Works with IRA to Catch Farm Crooks

The US Department of Agriculture (USDA) is collaborating with the IRS in an attempt to reduce cases of cheating in farm programs.

Recently, the USDA officially launched its Supplemental Revenue Payment Assistance Program under which eligible producers of farm products will receive subsidy payments. To reduce fraud, the department has signed a Memorandum of Understanding (MOU) with the IRS. Under the MOU, the IRS would supply the USDA with details of farmers' gross incomes through their tax returns. With this information, the USDA uses an electronic process to calculate and derive certain values which are then compared with the AGI limitations under the Farm Bill 2008. By this the USDA seeks to ensure that payments under the Supplemental Revenue Payment Assistance Program do not go to farmers whose adjusted gross income exceeds a certain limit.

So if you're thinking of gaming the system, forget it.

More IRS News is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on January 11, 2010 (boomark / email).