Sequestration Reduces Tax Refunds Due To Non-Profits

Non-profit organizations that filed Form 8941 claiming a refund against health insurance premiums paid by the organization will receive 8.7% less than the amount claimed. This reduction applies to all claims paid after March 1, 2013 and is a result of the Balanced Budget and Emergency Deficit and Control Act of 1985, as amended. This act requires certain automatic spending reductions until the end of the current fiscal year, which is September 30, 2013, including an 8.7% reduction in this tax credit. The rate of the reduction is subject to change or elimination at the end of the current federal government fiscal year or by an interim act of Congress.IRS Form 8941 - Credit for Small Employer Health Insurance Premiums

Learn more on the IRS website.

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About akroncpa

Levin Swedler Kennedy is an Akron, Ohio CPA Firm, offering business and not-for-profit consulting, financial statement preparation, tax preparation & planning, QuickBooks & Peachtree support, auditing, and business valuations since 1986.
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