Obamacare Waiver of Tax Reporting and Employer Pay or Play Penalties for 2014

July 10, 2013

On July 9, 2013, the IRS (click here to view a copy of IRS Notice 2013-45) confirmed that: 1. No penalty will be assessed against an employer or insurance company for failing for 2014 to satisfy the Obamacare tax reporting requirements under Internal Revenue Code §6055 and §6056. 2. No penalty will be assessed against an employer for failing for 2014 to provide healthcare coverage to its employees under the "pay" or "play" provisions of Internal Revenue Code §4980H. 3. An individual for 2014 will continue to be eligible for a premium tax credit to help purchase health insurance on an Obamacare exchange if the individual's household income is within the range specified in Obamacare and the individual is not eligible for minimum essential healthcare from his or her employer. (We note here  that HHS late last week waived for 2014 the requirement that an individual who claims a tax credit actually show that his or her household income is within this range and that he or she is not eligible for minimum essential healthcare coverage from his or her employer.) 3. The waiver of the penalties for failing to satisfy the tax reporting requirements or the employer "pay" or "play" requirements for 2014 has no bearing on the other provisions of Obamacare which are scheduled to become effective in 2014. Please contact Jan Marsh (678.336.7135) if you would like to discuss this development further.

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