eNews & Updates: URGENT BULLETIN: IRS Announced Automatic Extension of the Due Dates – 2015 Information Reporting Requirements

| December 29, 2015
December 29, 2015

 

  • URGENT BULLETIN: IRS Announced Automatic Extension of the Due Dates – 2015 Information Reporting Requirements
  • ICYMI: Other Recent Updates from Rick
  • Add your input to the MassAHU Board of Directors Annual Strtegic Planning Session. Please participate today.
Surprise!! IRS Notice 2016-04
In a Notice issued today (Notice 2016-04),

the IRS announced an automatic extension of the due dates for the 2015 information reporting requirements (both furnishing to individuals and filing with the IRS for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 of the Internal Revenue Code (Code), and the information reporting requirements for applicable large employers (ALEs) under section 6056 of the Code.

Notwithstanding the extensions provided in the Notice, the IRS specifically encourages employers and other coverage providers to furnish statements and file the information returns as soon as they are ready.

Richard A. Szczebak, Esq.
Parker Brown Macaulay & Sheerin, P.C.
rszczebak@parkerbrown.com

 

ICYMI: Recent Updates from Rick Szczebak…
It’s December …the favorite month for agencies such as the IRS…

…to do some housekeeping and release employee benefit guidance.  Last week the IRS and the U.S. Treasury Department did not disappoint as they released new guidance on the application of various provisions of the Affordable Care Act to employer-provided health coverage.   This guidance includes IRS Notice 2015-87 and final regulations relating to Minimum Value of Eligible Employer-Sponsored Plans and Other Rules Regarding the Health Insurance Premium Tax Credit.

Notice 2015-87 is organized into six different parts each providing specific guidance on various group health plan topics.  This guidance will take some unpacking and I will provide summaries of this guidance in separate written installments; some will be more extensive than others.

Today’s installment addresses IRS adjustments to the 9.5% threshold used by the affordability safe harbors for plan years beginning in 2015 and 2016, as well as cost adjustments to the $2,000 and $3,000 employer mandate excise tax assessments for calendar years 2015 and 2016.  These adjustments may impact applicable large employers immediately, depending on their particular circumstances.

As you may have heard…

President Obama signed the Consolidated Appropriations Act, 2016 into law last Friday, December 18, 2015. This Act, which has also been referred to as the Budget Reconciliation Bill, enacts a $1.1 trillion budget to keep the government running until the end of the current fiscal year ending September 30, 2016.
Buried on page 2000 of this document, in sections 101 and 102 of Division P of the Act, are amendments to the HIGH COST EMPLOYER-SPONSORED HEALTH COVERAGE EXCISE TAX PROVISIONS, also known as the “Cadillac Plan Tax”.  These amendments:

  • Provide for a 2 year delay, until 2020, in the effective date of the Cadillac Tax.  The original effective date was 2018.

Make the excise tax on high cost employer-sponsored health coverage tax deductible. Prior to this amendment the excise tax was not a deductible business expense.


Member Value Plus – December Update
MassAHU engages the professional services of Rick Szczebak, Esq. with Parker Brown Macaulay & Sheerin for our members. Read the December Edition: THERE IS NO SUCH THING AS AN INFORMAL HEALTH REIMBURSEMENT ARRANGEMENT (HRA)

 

Please Complete the Planning Survey

Please take a few moments to add your input in preparation for the MassAHU Board of Directors Annual Strtegic Planning Session.Your feedback as a member will help shape the direction and tone of the year at MassAHU. Please participate today.

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