The notice reiterated that the postponement will have no effect on the availability of the premium tax credit which assists certain low- and moderate-income individuals who enroll in a qualified health plan through a health insurance exchange in paying their premiums. It also does not affect the individual mandate under which imposes a penalty on individuals who do not have minimum essential coverage and will apply as scheduled beginning in 2014.
Treasury expects to publish proposed regulations implementing the information-reporting requirements for insurers self-insuring employers and other parties that provide health coverage and the information-reporting requirements for employers that provide health coverage to their full-time employees this summer. The proposed rules will reflect the transition relief for the information reporting rules for 2014.
Although the effective date for these provisions will be 2015 the government will encourage voluntary compliance in 2014 to prepare for full application of the rules in 2015. In the meantime the IRS wants to have additional time to discuss the reporting requirements with stakeholders to enable it to simplify the requirements while ensuring that the law is being implemented effectively.
Lindemeyer CPA will continue to follow changes and updates related to the postponed employer health care penalty and update any new information on the blog and in our e-newsletter. Take a minute to sign up here to get monthly updates.