Preparing for 2015 tax filing and the ever-evolving ACA reporting requirements.

• Author: Barbour, Tracy
• Position: FINANCIAL SERVICES

As the 2015 tax filing season progresses, there are various measures businesses should take to ensure they are adequately prepared to fulfill their reporting responsibilities, including completing several challenging tax forms related to employer-provided health insurance.

By now, much of the preparations for filing 2015 taxes should have already been completed. Prior to the end of 2015, companies should have reviewed their books and talked with their tax advisors to see if there were any tax-planning opportunities they could have implemented. After yearend, their books should have been closed and general account ledgers should have been reconciled. W-2's and 1099's should have been sent to recipients by the end of January.

Now is a good time for businesses to make sure they have up-to-date accounting records, so they know where they stand from a tax perspective. For S corporations, partnerships, and sole proprietorships--which represent the majority of business entities--a key concern is ensuring that owners' estimated tax payments were adequate based on the profits for the year, according to Kevin Van Nortwick, CPA/ABV, CVA, tax managing partner of BDO USA, LLP. Otherwise, a penalty could be imposed for underpayment. "One of the number one things to do is to pay in the safe harbor amount for your estimated taxes, which is generally 90 percent of your tax for the current year or 110 percent of what it was the year before," says Anchorage-based Van Nortwick.

During February, a business might take a closer look at making retirement plan contributions, Van Nortwick says. Depending on its legal structure, the company could opt to fund an SEP (Simplified Employee Pension) IRA, SIMPLE (Savings Incentive Match Plan for Employees) IRA, or Keogh Retirement account. Looking further into 2016, a business might consider incorporating. Entities that are already formed, including limited liability companies, could elect to become an S corporation and gain the advantage of not having to pay self-employment tax (social security and Medicare) on profits of the business.

Bonus depreciation is another area of consideration that has a significant impact on business taxes. Last year in December the government brought back bonus depreciation for 2014, resulting in substantial tax savings for businesses with qualifying assets. There's a possibility that bonus depreciation could be extended for 2015, so businesses should watch how this all unfolds, Van Nortwick...