The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • ACA Reporting
  • Expect IRS to Enforce the ACA’S Individual and Employer Mandates [UPDATE]

Articles

Expect IRS to Enforce the ACA’S Individual and Employer Mandates [UPDATE]

February 7, 2018 Robert Sheen ACA Reporting, IRS
Expect IRS to Enforce the ACA’S Individual and Employer Mandates [UPDATE]

The approval of tax reform legislation by Congress may ultimately have an impact on the Affordable Care Act (ACA) in 2019. That’s when the legislation essentially repeals the individual mandate provision of the ACA by making the tax penalty $0 for any American who does not obtain health insurance.

Until then, expect the IRS is moving forward with its efforts to enforce compliance with the ACA for the individual mandate. There is no change with respect to the employer mandate. The IRS has been and will continue to enforce it.

With the individual mandate in effect for the 2017 tax year, the IRS has updated information on its website for the 2017 tax year regarding the ACA’s individual mandate. For the 2018 tax filing season, the IRS says it will not consider a return complete and accurate if the taxpayer does not report full-year coverage, claim a coverage exemption, or report a shared responsibility payment on the tax return. The IRS stated that most taxpayers have qualifying health coverage for all 12 months in the year, and will check the “Full-year coverage” box on their tax return. Taxpayers who do not have full-year coverage will indicate whether they qualify for a coverage exemption or owe a shared responsibility payment. This is a change from past filing seasons, when the agency accepted tax returns without this information.

More information from the IRS on the individual mandate can be found by clicking here.

The IRS has issued guidance on how taxpayers can calculate the affordability exemption for the ACA’s individual mandate. The guidance addresses the challenges for individuals who live in areas where no bronze level plans are available in the healthcare marketplace for 2017.

In regards to the employer mandate, the IRS has started sending IRS Letter 226J tax penalty notices containing ACA penalty assessments for ACA information filings for the 2015 tax year. Some of these IRS Letter 226J notices contained penalties in the millions of dollars. More are expected to be issued in 2018, including for 2016 tax year filings.

For an infographic on how to respond to Letter 226J penalty notices, click here.

To learn more about ACA compliance in 2021, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Summary
Expect IRS to Enforce the ACA’S Individual and Employer Mandates [UPDATE]
Article Name
Expect IRS to Enforce the ACA’S Individual and Employer Mandates [UPDATE]
Description
The IRS has provided updated information on the enforcement of the ACA’s individual mandate for the 2017 tax year while the agency continues its efforts to enforce the ACA’s employer mandate.
Author
Robert Sheen
Publisher Name
The ACA Times
Publisher Logo
The ACA Times
Short URL of this page: https://acatimes.com/pzz
Robert Sheen

Robert Sheen

Esq., is Editor-in-Chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

ACA ComplianceACA ReportingAffordable Care ActCongressEmployer MandateEmployer Shared Responsibility PaymentHealth Care CoverageHealth Insurance MarketplaceIndividual MandateIRSIRS Letter 226JLegislationPenaltiesTax Reform
Related Articles How to Leverage Your Workforce Data to Meet DEI Goals How to Leverage Your Workforce Data to Meet DEI Goals
Related Articles An Employer’s Guide to Navigating the DEI&A Landscape An Employer’s Guide to Navigating the DEI&A Landscape
Related Articles Governments, Investors, & Litigators Are Focusing More on ESG Governments, Investors, & Litigators Are Focusing More on ESG
Related Articles Administration Predicts Lower ACA Enrollment by Robert Sheen  •  
Related Articles IRS Eases Rules on Hardship Exemptions by Robert Sheen  •  
Related Articles HHS Awards $36 Million To Health Centers by Robert Sheen  •  
2021 ACA Employer Guide — IRS & State Filing Requirements
Subscribe

Popular Posts

  • California Individual Mandate Penalties Will be Issued in 2021
  • Biden’s Affordable Care Act Advancements are Underway
  • What Employers Need to Know About the 2020 ACA 1095-C Codes
  • Employers May Face Additional Challenges with 2020 ACA Reporting
  • Five Resources Essential for ACA Compliance in 2021
  • The IRS is Issuing ACA Penalty Letter 226J for 2018
  • Most Frequently Asked ACA Questions for Employers and Individuals

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!