IRS Update: Premium Tax Credit And Shared Responsibility Payment
New regulations have arrived for the ACA’s Premium Tax Credit and Shared Responsibility Payment provisions. For the 2015 tax year, many employers and employees encountered difficulties with regard to the PTC and whether or not a shared responsibility payment was required. The result was unexpected penalties that are still being imposed to date. However, the IRS has now shed some light on both issues with a few updates to the provisions.
These IRS regulations have been released, coming into effect for the tax year following December 31, 2016. However certain provisions may be applicable for years before (tax years following December 31, 2013). Other rules won’t come into effect until after December 31, 2018.
The regulations involve eligibility for the Premium Tax Credit and repayments of the advance credit, as factors such as the Federal Poverty Line have provided some ambiguity when it comes individuals’ ability for repayment. Further, fraudulent incidents have arisen, where forms are intentionally completed incorrectly to obtain credits with health care purchased from the Health Insurance Marketplace. New regulations are being implemented to rectify this as well better determining who is an eligible taxpayer for such advancements.
Further, new regulations will change how employers handle their opt-out programs for employees’ health coverage, along with how families receive assistance with plan premiums. While these new regulations may provide a better understanding for both employers and employees, the real benefit will come tax season when these new changes will come into effect.
To view a summary of these new regulations, click here.
|
![Get to Know Oregon’s Equal Pay Act of 2017 [UPDATE]](https://payparitypost.com/wp-content/uploads/2019/02/AdobeStock_115007068_800px.jpg)
