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William Byrnes (Texas A&M) tax & compliance articles

TaxFacts Intelligence June 24, 2021

Posted by William Byrnes on June 24, 2021

Both the Courts and the IRS have had a busy week. The Supreme Court rejected the latest challenge to the Affordable Care Act and the ACA remains the law of the land–although the next ACA challenge has already been filed in Texas. On the IRS side, we have a new online tool designed to help lower-income taxpayers take advantage of the advance child tax credit benefits for 2021. Read on to make sure you’re up to date on the latest news.

Prof. William H. Byrnes         Robert Bloink, J.D., LL.M.

Supreme Court Dismisses Latest ACA Challenge

In a 7-2 vote, the Supreme Court dismissed the latest challenge to the constitutionality of the Affordable Care Act (ACA). Rather than addressing the case on the merits, the Court determined that the plaintiffs did not have standing to sue–meaning that the plaintiffs had no legal right to launch the challenge in the first place. Because the individual mandate was reduced to $0 by the 2017 tax reform legislation, the plaintiffs would suffer no adverse consequences if they simply chose to not purchase health insurance. Therefore, there was no government action connected to their injury. However, yet another constitutional challenge to the ACA has already been filed. The next lawsuit challenges the law’s zero dollar coverage for preventative services–including vaccines, contraceptives and other preventative services. For more information on the ACA employer mandate, visit Tax Facts Online. Read More

Related Questions:

8845. How does an employer that has been in existence for less than one year determine whether it is subject to the ACA shared responsibility provisions?

8846. How does an employer that has a common owner with another employer determine whether it is subject to the ACA shared responsibility provisions?

Considerations for Resuming RMDs in 2021

The 2020 CARES Act suspended all RMD requirements for the 2020 tax year. That relief was not extended into 2021, although taxpayers have no obligation to “make up” their skipped 2020 RMDs. However, many taxpayers may be surprised to see that the amount they’re required to withdraw in 2021 is larger than distributions prior to the pandemic. The amount of a client’s RMD is determined based upon their account balance and life expectancy factor. Strong market performance means that many clients will have larger retirement account balances, meaning that the percentage of withdrawal required has also increased. Taxpayers who reached age 70½ in 2019 are required to resume taking RMDs. However, taxpayers who had not reached age 70½ in 2019 are not required to begin RMDs until April 1 of the year after they reach age 72. These RMD rules apply to traditional retirement accounts and inherited accounts—but not to Roth IRAs. For more information on the RMD rules, visit Tax Facts Online. Read More

Related Questions:

3683. What can be done before the IRA required beginning date in order to minimize required minimum distributions?

3684. How are minimum distribution requirements calculated if an individual owns more than one IRA?

IRS Releases New Online Tool to Help Taxpayers Register for Monthly Child Tax Credit Payments

The IRS has launched a new online tool to help taxpayers who may not be required to file a federal income tax return register to receive installment payments for the 2021 child tax credit. The tool provides a way for eligible people who don’t make enough income to have an income tax return-filing obligation to provide the IRS the basic information to figure and issue their Advance Child Tax Credit payments beginning next month. Eligible individuals can visit IRS.gov to access the tool and provide their name, address, Social Security numbers and direct deposit information so that the IRS can deposit their installment payments. Taxpayers who have already filed a return are not required to take any other action to receive installment payments of the child tax credit. The IRS release noted that these are the only two options to sign up for advance payment benefits–any other method offered is a scam. For more information on the child tax credit in 2021, visit Tax Facts Online. Read More

Related Questions:

756. What credits may be taken against the tax?

757. Who qualifies for the tax credit for the elderly and the permanently and totally disabled and how is the credit computed?

758. Who qualifies for the child tax credit?

Wealth & Risk Management Studies for Industry Professionals

The Texas A&M graduate programs for risk management for areas like wealth management, tax risk management, financial risk, economic crimes, ESG risk, are accepting applications for fall. Over 500 candidates are currently enrolled in the graduate courses yet maximum enrollment per course section is maintained at 30 so that each student receives meaningful feedback throughout the course from the full-time academic and professional part-time faculty. Check out the graduate program here: https://law.tamu.edu/distance-education

Texas A&M, an annual budget of $6.3 billion (FY2020), is the largest U.S. public university, one of only 60 accredited U.S. universities of the American Association of Universities (R1: Doctoral Universities – Highest Research Activity) and one of only 17 U.S. universities that hold the triple U.S. federal grant of Land, Sea, and Space! The law school has the #1 bar passage in Texas, and #1 for employment in Texas (and top 10 in U.S.)

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