October 2016
Stay Current Newsletter
AA1IRS Warns of Fake Affordable Care Act Tax Bills 
Fraudulent CP2000 Notices Being Sent by E-mail

The Internal Revenue Service has issued an alert to taxpayers and tax professionals to be on guard against fake e-mails purporting to contain an IRS tax bill related to the Affordable Care Act (ACA). The IRS has received numerous reports around the country of scammers sending fraudulent versions of CP2000 notices for tax year 2015. Generally, the scam involves an e-mail that includes a fake CP2000 as an attachment.

The fraudulent notices have the following characteristics:
  • These notices are being sent electronically, even though the IRS does not initiate contact with taxpayers by e-mail or through social media platforms;
  • The CP2000 notices appear to be issued from an Austin, Texas, address;
  • The underreported issue is related to the Affordable Care Act (ACA) requesting information regarding 2014 coverage; and
  • The payment voucher lists the letter number as 105C.
The fraudulent CP2000 notices include a payment request that taxpayers mail a check made out to "I.R.S." to the "Austin Processing Center" at a Post Office Box address. This is in addition to a "payment" link within the e-mail itself.

A genuine CP2000 is generated by the IRS Automated Underreporter Program when income reported from third-party sources such as an employer does not match the income reported on the tax return. This notice is commonly mailed to taxpayers through the U.S. Postal Service, and is never sent as part of an e-mail to taxpayers. To determine if a received CP2000 notice is real, please see the IRS's Understanding Your CP2000 Notice page, which includes an image of a real notice.

Taxpayers or tax professionals who receive this scam e-mail should forward it to phishing@irs.gov and then delete it from their e-mail account.

AA22017 HSA and HDHP Contributions

For calendar year 2017, the annual limitation on HSA contributions for an individual with self-only coverage under a high deductible health plan is $3,400 and those with family coverage can contribute $6,750. 
For calendar year 2017, a "high deductible health plan" is a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage. 

AA3Question of the Month 

Q: How are health savings account (HSA) contributions calculated? 

A: HSA contributions are calculated by month. In 2016, if an individual who moves from family coverage to single coverage, the individual's maximum contribution amount is calculated as:

(X/12 x $6,750) + (Y/12 x $3,350) = $____. The dollar figures used in the formula will change annually based on the IRS contribution limits.

X represents the number of months the individual was eligible under family coverage; Y represents the months the individual was eligible for single coverage.

AA4 Volunteerism in the Workplace 

Did you know that providing an opportunity for your employees to give back to the community boosts engagement? At Benefits Done Right we support our employees and their desire to volunteer in our local community. 

This past weekend some of our team attended the Sacramento SPCA Black and White Fur Ball. Not only did we get to dress up and enjoy a night out, but it was for a great cause - giving back to support the four-legged members of our community! How does your company incorporate volunteerism in the workplace? 

AA5Social Security Requirements for Employee Name Changes              
With the end of the year approaching, it is a best practice for employers to confirm that each employee's name and Social Security Number (SSN) as displayed on his or her Social Security card, matches the employer's payroll records and year-end Forms W-2. 

Is your company compliant?  Rea d our most  recent blog on  HR Done Right for all the details.  

If you missed our September newsletter, click the link below to read our December renewal reminders. These important updates will answer many questions about carrier processing times and what you and your employees can expect during this busy open enrollment season. 

Please mark your calendar for our 2017 compliance seminar, to be held January 19, 2017. You will want your entire executive team to attend. More information to follow. 

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