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The Department of Treasury and the Internal Revenue Service (IRS) Sept. 9 issued proposed regulations related to the Affordable Care Act’s (ACA) employer and insurer information reporting requirements under Internal Revenue Code sections 6055 and 6056. 

Section 6056 applies to large employers (employers with 50 or more full-time equivalent employees) subject to the employer mandate.  Applicable large employers are required to report to the IRS information about their compliance with the employer mandate provisions and the health care coverage they have offered to employees.  Further, they are required to provide related statements to each full-time employee.

Under section 6055, health insurance issuers and self-insuring employers that provide minimum essential health coverage to individuals must report to the IRS information about the type and period of coverage and furnish related statements to covered individuals.  

Please note that Notice 2013-45 provides transition relief for 2014 from the section 6055 and 6056 information reporting requirements. The IRS will not impose penalties for failure to timely and accurately report under sections 6055 and 6056 for coverage in 2014. The information reporting will be fully effective for 2015. 

For a detailed overview of the reporting requirements contained in the proposed rules, Washington Council Ernst & Young has provided a Health Care Alert .    

ABC is a member of the Employers for Flexibility in Health Care (E-FLEX) coalition, which is led by Washington Council Ernst & Young.   Over the last year, through comment letters and meetings, the E-FLEX coalition has urged the Obama administration to provide flexible options for employers to comply with the information reporting requirements.  In the coming months, the coalition will continue to identify ways to streamline the process.  

Proposed Rules:
Section 6055
Section 6056

E-Flex Letters Related to Information Reporting:
Aug. 5, 2013  
March 15, 2013
Feb. 21, 2013 
June 11, 2012