The taxpaying public has started drilling the tax department with questions pertaining to the Patient Protection and Affordable Care Act. The PPACA with it’s enrollment website, tax breaks, and new taxes, has added even more confusion to pre-tax season.
“Most of the changes that are to be implemented in 2014 have to do with healthcare coverage.“ Charles E. McCabe, President and CEO of The Income Tax School wrote this past September. “This Provision requires that each person either have the minimum essential coverage, qualify for an exemption or make a payment when filing his or her federal income tax return.”
“Forty of the 500 provisions in the ACA amend or add provision to the U.S. Tax Code. This Provision requires that each person either have the minimum essential coverage, qualify for an exemption or make a payment when filing his or her federal income tax return.”
-Charles E. McCabe, President & CEO of The income Tax School
Many believe that the PPACA and all of it’s confusion will hinder the relationship between accountant and client. This confusion could change a relationship built on trust and mutual success, to one that could create a negative outlook on accountants. The tax department could go from being seen as an ally, to being seen as “narcs” or “rats” very quickly if the line of communication isn’t clear. The IRS isn’t fighting this battle, so the ball is in the hands of accounting and tax preparers. If they fail to report non-compliance with the PPACA, tax pros could face prosecution for fraud. While all of this is important to consider, we have a different outlook.
If you are a new or temporary hire, being able to educate your clients on the PPACA is a way that you can earn respect and potentially gain clients in the future. The PPACA could open doors for your career, and raise you above the rest. If you are currently seeking a temporary or permanent position in accounting, understanding intricate details of the PPACA could set you apart from other applicants and snag you the position you’ve been looking for. Our suggestion? Read up on everything you can.
You can read the entire PPACA on the Government Printing Office website.
Check out our previous blog post for the Essentials of the PPACA.
For our accountants currently in the workforce, are you getting questions from your clients? What are you doing to clear the fog?