ACA

ACA Penalties have no statute of limitations!

We are neck deep in the current ACA reporting cycle and while the main focus of employers should be meeting their fulfillment and e-filing deadlines, it is important they take note of a clarification recently made by the Internal Revenue Service.  The IRS has stated that penalties for noncompliance with the Employer Shared Responsibility Tax have no statute of limitations on when the IRS can impose them.  This means that employers are never “safe” or “out of the woods” from receiving penalty letters, even from the very first reporting season, which happened in the spring of 2016.  This clarification came from the Chief Counsels Office at the IRS, and the entire memorandum can be read here: https://www.irs.gov/pub/irs-lafa/20200801f.pdf

Continue Reading

How to remain ACA compliant during an acquisition

Affordable Care Act (ACA) compliance is likely the last thing on anyone’s mind during an acquisition.

But that would be a mistake.

Even when everything looks and feels similar after one company purchases another – the same employees, the same company name – that’s not true about their ACA reporting.

Continue Reading

Fifth Circuit Rules Individual Mandate Unconstitutional: However, case gets one step further from the Supreme Court

On Wednesday, December 18th, The Fifth Circuit Court of Appeals ruled in a 2-1 vote that the individual mandate of the Affordable Care Act was unconstitutional.  As a refresher, the individual mandate required U.S. citizens to purchase healthcare coverage or pay a penalty.  However, the penalties were zeroed out as part of the 2017 Republican Tax Reform bill.  The zeroing out of the penalties is what initially started the legal process that the Fifth Circuit ruled on yesterday. 

Continue Reading