Treasury releases proposed regs. for health care information-reporting requirements.

• Author: Bierma, Christa

The Treasury Department and the IRS in September released long-awaited notices of proposed rulemaking (REG-132455-11 and REG-136630-12) on information-reporting requirements for employers and health insurers under Secs. 6055 and 6056, as enacted by the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148. Under Sec. 6056, large employers subject to PPACA's employer mandate (Sec. 4980H) must file a return with the IRS and provide a statement to each full-time employee with information regarding the offer of employer-provided health care coverage. Under Sec. 6055, employers offering self-funded plans and insurers generally must file a return with the IRS and provide a statement to each individual on who is covered by plans that constitute minimum essential coverage.

Notice 2013-45, issued in July, provided 2014 transitional relief for information reporting required under Secs. 6055 and 6056. The proposed regulations incorporate this relief and provide that the first filings that are mandatory will be for calendar year 2015 and will be made in early 2016.

The proposed regulations' preambles request comments on ways to streamline the reporting rules and avoid duplicative reporting. At the same time, Treasury and the IRS want taxpayers to be mindful that the reported information is designed to assist the IRS and individuals in the fair and efficient administration of the individual mandate (Sec. 5000A), the employer mandate (Sec. 4980H), and the premium tax credit (Sec. 36B).

PPACA Reporting Provisions

PPACA enacted three information-reporting provisions requiring employers and health insurance issuers to report to the IRS and furnish statements to individuals with information regarding health care coverage. Each reporting provision was enacted for a particular purpose:

* Sec. 6051 requires employers to report annually all wages and wage-related information on Form W-2, Wage and Tax Statement. Beginning for 2012 (the Form W-2 provided to employees in January 2013), employers filing 250 or more Forms W-2 for the preceding calendar year are required to report the aggregate cost of employer-sponsored health care coverage. This provision of Sec. 6051 was enacted to inform employees of the

value of employer-sponsored health care coverage provided on a pretax basis.

* Sec. 6055 requires employers sponsoring self-insured group health plans, insurance issuers, and governmental units to report to the IRS and provide a statement to individuals with information regarding minim urn essential coverage. Employers and health insurance issuers report the information only if the individual is actually enrolled in coverage. This annual filing tabulates the individual's health care coverage information on a monthly basis. Sec. 6055 was enacted to provide the IRS and individuals with the requisite information to administer the individual mandate.

* Sec. 6056 requires large employers (those with 50 or more full-time-equivalent employees, including governmental units) to report to the IRS and provide a statement to all Full-time employees with information about the applicable offer of employer-provided coverage, whether or not the offer of coverage was accepted. This annual filing reports the offer of health care coverage on a monthly basis. Sec. 6056 was enacted to provide the IRS with information necessary to administer the employer mandate. It also provides the IRS and individuals...