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 2018, click here.

For ACA reporting in 2019, organizations should review this link for important dates and requirements.


For any questions or a consultation on the ACA or IRS Letter 226J, contact Gregg Kasubuchi of Trusaic at (213) 355-5108 or at gkasubuchi@trusaic.com.

Share this...
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
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 New York City Human Rights Law Could Impact Pay Equity Efforts New York City Human Rights Law Could Impact Pay Equity Efforts
Related Articles U.S. Baristas Share Salaries in Hopes for Higher Pay U.S. Baristas Share Salaries in Hopes for Higher Pay
Related Articles Megan Rapinoe WorldatWork Pay Equity Symposium Megan Rapinoe WorldatWork Pay Equity Symposium
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  •  

Popular Posts

  • Mark These 2020 Dates for ACA Reporting for 2019
  • IRS Issues Draft 2019 ACA Forms 1094-C and 1095-C and Reporting Instructions
  • The Look-Back Measurement Method Can Help Prevent ACA Penalties
  • IRS Using Levy Power to Collect ACA Penalties
  • IRS Issues Deadline Extension for Furnishing Forms 1095-C
  • ACA Affordability to Decrease for the 2020 Tax Year
  • Letter 972CG Late Penalty Assessments are Becoming More Difficult to Repeal
  • What to Expect from California’s Individual Mandate

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (110)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (80)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories

Click me

Follow Us

Twitter Facebook

© 2019 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

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