It's official now. April 15th has now passed. A major tax deadline is now over. As a working CPA whose responsibilities include individual and corporate taxes, it is a relief to be now looking on the other side of this date.
I have had people over the years ask me what in the world I do now that April 15th has come and gone, as if that is what a CPA firm spends most of it's time on. Fortunately if one values full time employment, or unfortunately if one craves a greater degree of leisure, that is not the case in most firms.
It is true that at my age and my desire to have at least some time to pursue other goals, that I personally take a little bit more time off than I do during tax season. But that is a voluntary choice, one that my firm accommodates. I am not a partner or sole practitioner, so I don't put in the hours that those dedicated entrepreneurs do. There is plenty to do year round. Tax deadlines actually stagger throughout the year, including the non-profit 990 tax form deadline coming up May 15th. There are payroll services, financial reports, audits, and various different management reports and special assignments. Work has become so steady that it is nearly impossible to hold to the tradition of closing the office for a day or two after April 15th.
The year was a little bit more difficult than most. Congress and IRS regulations are always adding layers of complications. This year added the additional requirements surrounding the Affordable Care Act. We had to ask more questions than we normally do, and had to fill out up to three more forms, depending on the answer we got. The tax penalties for non-compliance were fairly minimal this year, but will accelerate in future years. For 2014, it may have been more economical to pay the additional tax than the cost of insurance. Of course, that only worked if you and your family remained healthy. an awful gamble to take given the cost of medical services. A few people who got health insurance from the exchanges wound up in trouble because they underestimated their income and had to return some of the premium subsidy they had gotten throughout the year. If you go to the exchange, please carefully consider the income level you report, noting that it may be more helpful to err on the side of caution. If you're unsure, you may want to consult with your tax adviser.
Like many of our laws, the Affordable Care Act is complicated, and some aspects are positively Rube Goldbergian, Most of our legislation is the result of compromise, and therefore often more complicated than it needs to be, but democracy is rarely a straight line. Unfortunately, many of the fixes that normally occur in legislation are not happening with the Affordable Care Act, because one of our political parties has decided to go to war with it rather than make it better.
Was it worth it? In my view, if more people are covered, than yes, it's worth it. And all statistics show that the number of people covered has increased dramatically. The rise in healthcare costs has slowed dramatically. The deficit reducing effects of the law have exceeded even expectations.Young adults can be covered on their parent's policy longer. Pre-existing conditions are no longer the fearful excluder they used to be. Medical bankruptcies should be on the decline.
Some states have not made the progress of other states. They are fighting setting up their own state exchanges. They are refusing to extend medicare benefits. So in some states the number of uninsured is not dropping as dramatically as it is in other states. Georgia is one of the states, and the strain of our lack of participation is hurting hospitals and care providers, particularly in rural areas.
On the other hand, given the stress involved in the tax system, I am pleasantly surprised by the level of courtesy and cooperation from all involved. Revenue agents at both the federal and state level are almost always courteous and kind to me when I am able to contact them. The IRS, in spite of having increasing regulations to enforce and supervise, has had their staff cut repeatedly by Congress, and are becoming a little bit more difficult to secure contact with (if you call them, be prepared to listen to a lot of Muzak). At the same time, virtually all taxpayers I deal with do their very best to be helpful and informative. They are doing their best to cooperate and deal with a very complex system that almost no one completely understands.
I can't speak to places that only do taxes, such as Liberty or H & R Block, but as for public CPA firms like the one I work for, don't be surprised when you pass us by on April 16th as to why we're still working. We are doing many, many things to help you and others, and to contribute to a growing, vibrant, and healthy economy.
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