IRS recently sponsored a Nationwide Tax Forum at which some significant information reporting issues were discussed relative to enabling IRS to implement the “Affordable Care Act.” Some such issues include:
- IRS will be required to provide information to the state health insurance “exchanges” which must come into being by 2014. Exchanges will need information about household income and size, which may necessitate expansion of such disclosures on individuals’ Forms 1040.
- Employers will be responsible to report the extent and level of insurance coverage they provide to employees to enable IRS to determine whether the individuals are entitled to a premium tax credit.
- Employees will be receiving a flurry of notices from employers, notifying them about the options for coverage, the premium tax credit, and other matters, likely starting in early 2013.
Let’s hope the question of whether the “Affordable Care Act” will even remain in existence is resolved soon!