Daily Tax Update - July 6, 2016: Treasury, IRS Issue Proposed Regulations on Premium Tax Credit

Treasury, IRS Issue Proposed Regulations on Premium Tax Credit:  Today, the IRS and Treasury issued proposed regulations relating to the health insurance premium tax credit and the individual shared responsibility provision under the Affordable Care Act.  These proposed regulations affect individuals who enroll in qualified health plans through Health Insurance Exchanges (Exchanges) and claim the premium tax credit under section 36B, as well as the Exchanges that make qualified health plans available to individuals and employers.  These proposed regulations also affect individuals who are eligible for employer-sponsored health coverage and individuals who seek to claim an exemption from the individual shared responsibility provision because of unaffordable coverage.  The proposed regulations apply for taxable years beginning after December 31. 

IRS Warns Tax Preparers of Data Theft Risks:  The Security Summit, a partnership between the IRS, state tax agencies, and the tax community formed to combat identity theft, released Fact Sheet 2016-23 to expand its public awareness campaign on data security to include tax professionals.  The fact sheet outlines critical steps necessary to protect taxpayer information and urges preparers to follow the security recommendations found in Publication 4557.