IRS Actions Make Clear That ACA Reporting Will Still Be Enforced

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Despite recent Presidential Executive Orders and Congressional attempts to repeal and/or replace the Affordable Care Act (ACA), the Internal Revenue Service (IRS) has taken action in recent months to remind employers and individuals that reporting about health insurance coverage is still required and is being more closely monitored. On April 7, 2017, the Treasury Inspector General for Tax Administration issued a report indicating that an IRS system to identify employers who may owe “pay-or-play” penalties for not providing health insurance to their full-time employees could be operational by May 2017. Then, in mid-October 2017, the IRS announced that it would not accept individual income tax returns for 2017 that do not provide information about whether the individual had health insurance, was exempt from the requirement to have health insurance or will pay the penalty for non-compliance.

As a further indication that the IRS is concerned about employer and individual compliance with ACA health insurance coverage mandates, the IRS recently included ACA “Estimator Tools” on its website. These Estimator Tools can be used by employers and individuals to determine how the ACA may affect them and to estimate any penalty payments they may owe for non-compliance.

For more information about recent events relating to the ACA, be sure to register for Employee Benefit Corporation’s upcoming webinar on Nov. 2 and Nov. 7, 2017—ACA Updates.

Categories: Health Care Reform, Compliance | Tags: IRS , ACA , reporting , pay-or-play , individual mandate , health insurance | Return