PROJECT DESCRIPTION
Prior to my role as NCCPAP’s public relations manager, its members had been regularly meeting with the IRS, testifying before members of Congress and shaping tax policy in their respective states with little to no recognition in the press. Our PR efforts significantly increased NCCPAP’s visibility as members became regular contributors to financial and tax publications.
Recognition in local and national media outlets further solidified NCCPAP members’ reputations as experts in their field. CPAs who serve NCCPAP to shape tax policy do so on a voluntary basis. Getting them recognized in publications that garnered press for the organization had a positive secondary effect by providing marketing for their own practices. This not only increased their own value in the view of their clients and prospective clients, but elevated the value of a NCCPAP membership.
FOR IMMEDIATE RELEASE
The Affordable Care Act (ACA) Will Negatively Impact Millions of Unsuspecting Taxpayers in 2014
Issued by the National Conference of CPA Practitioners (NCCPAP)
November 10, 2014, Mineola, NY -- Millions of taxpayers expecting a refund for 2014 will be surprised to learn that their refund will either be reduced or delayed, or in many cases taxpayers will owe the IRS money due to the ACA. The ACA comes with new filing requirements that will affect all taxpayers and businesses.
All taxpayers will have to answer questions concerning their Minimum Essential Coverage. This includes even the most basic returns for their dependent children.
“The 8 million plus taxpayers who purchased health insurance on the Exchange may be in for an unpleasant surprise.” says Tax Policy Chair of NCCPAP Stephen Mankowski. Mankowski practices in Bryn Mawr, PA outside of Philadelphia and is a partner of EP Caine & Associates.
“Initially, these individuals may have believed their health insurance premium was somewhat reasonable,” said Mankowski. “This is because many of these individuals received an Advanced Premium Tax Credit, which subsidized their premiums immediately.”
These subsidies made health care coverage more affordable at the time of purchase. However, several life circumstances could cause a taxpayer to be responsible for repaying the government. These include: a raise, a new job, getting married or divorced.
“Essentially these life changes will cause a taxpayer to lose the subsidy resulting in an increase in said taxpayer’s taxes, a loss of refund or a balance due,” said Mankowski.
A reconciliation of these credits must be performed on all returns, which includes any type of premium tax credit: not an easy process.
To further complicate an already challenging situation, taxpayers will be receiving many new forms that will be required in order to prepare their 2014 tax return(s). Taxpayers don’t know what they don’t know. The IRS is not aware of the potential fallout that could occur over the confusion regarding these forms, and most tax preparers are unprepared. It is our opinion that the lack of widespread knowledge on this issue is because the new ACA related forms and their instructions were only recently released in draft form by the IRS, and some were released as late as October 15, 2014.
According to NCCPAP President Sandra Johnson, who runs her own practice in Bellmore, NY, all of these issues have made it virtually impossible for tax preparers to set reasonable expectations for their clients.
“In our opinion, Washington should delay the implementation of this part of the ACA by one year. Otherwise it is anything but affordable,” Johnson said.
ABOUT NATIONAL CONFERENCE OF CPA PRACTITIONERS (NCCPAP)
NCCPAP is a professional organization that advocates on issues that are of importance to CPAs in Public Practice throughout the United States. NCCPAP members represent over one million businesses and individual clients. NCCPAP monitors and influences tax administration and tax policy by meeting with Internal Revenue Service representatives and state taxing authorities as well as national and state elected officials. In addition, NCCPAP provides a platform for its members to exchange ideas and information on managing and running a successful CPA practice in today’s competitive environment.
“It has been my pleasure to know and work with Alexis Burd in my capacity as chair of the public relations committee of the National Conference of CPA Practitioners. Alexis is an excellent writer, a very good listener and has been very attentive to our organization’s needs. Her follow-up with assignments has been excellent and we have achieved significant growth in our public relations activities under her guidance.”
Carol Markman, CPA
Public Relations Committee Chair
NCCPAP