Workers In Multi-Employer Health Plans Ineligible For Tax Credits. Union workers who are covered by multi-employer health plans will not qualify for federal tax credits to defray their premium costs under the Affordable Care Act. Workers in the construction trades, who often move from employer to employer as projects are completed, frequently are insured under multi-employer plans that are negotiated with their unions. The workers do not pay income taxes on the premiums paid by the employers. As a result, according to a letter from the Treasury Department to Sen. Orrin Hatch, R-Utah, those workers are not entitled to tax credits that would further subsidize their premiums if they purchase individual insurance on the state- or federally run exchanges created under the ACA. 2013 TNT 180-16.
Beanie Babies Maker Charged With Secret Offshore Account. H. Ty Warner, whose Ty Inc. created the Beanie Babies line of collectible plush toys, has admitted maintaining a secret offshore bank account and evading more than $1.2 million in taxes, the Justice Department announced. Warner, 69, of Oak Brook, Ill., was scheduled to be arraigned this month on a single count of tax evasion, which carries a potential jail term of up to five years. He also reportedly faced more than $53 million in penalties for failing to report the existence of a secret Swiss bank account on government financial disclosure forms. 2013 TNT 182-30.
Same-Sex Spouses Deemed Married Regardless Of Subsequent Moves. Same-sex couples who are legally wed in a state that permits such unions will be treated as married even if they are domiciled in a state that does not recognize gay marriage, the Internal Revenue Service has ruled. The agency cited its longstanding precedent of recognizing common-law marriages for couples who have moved to jurisdictions where such unions are not valid. Under Section 3 of the Defense of Marriage Act, the IRS said, it was prohibited from recognizing same-sex marriages, but the Supreme Court struck down that section in June. As a result, the agency announced, all such couples would be treated as married beginning Sept. 16. Same-sex spouses also have the option of filing refund claims and other tax returns as married couples for earlier periods, provided the statute of limitations has not lapsed. Rev. Rul. 2013-17.