Dive Brief:

  • The IRS says it won’t reject taxpayers’ 2016 income tax returns with missing healthcare information, says SHRM. Health information, as mandated by the Affordable Care Act, belongs on line 61 of Form 1040 and line 11 on Form 1040EZ.
  • The IRS’ decision applies only to personal income tax filing and doesn’t affect employers’ filings, says SHRM. Also, penalties for noncompliance are still in place and will be enforced, say IRS officials.
  • While health information on personal tax returns has been required since 2014, the IRS gave taxpayers a reprieve by not having to include it. This tax season was supposed to be the year the IRS would require it on tax forms.

Dive Insight:

Whether the IRS will enforce the mandate next year and ultimately penalize taxpayers who don’t include health information on their returns or whether the agency is holding out for the ACA’s possible repeal or reform is unclear. The agency has the right to follow up with taxpayers later.

Employers should continue meeting their tax obligations under the ACA until they’re told otherwise. They still must send employees Form 1095-C and submit Forms 1094 and 1095 to the IRS.

The health law might not change until 2018. The president and Republican lawmakers are still considering their repeal and replace plan.


Source: HR DIVE