Enforcement shifts are rumbling in Washington regarding a section of the Affordable Care Act. New actions could find your business exposed. Kyle Scott discusses four ESRP developments to keep an eye on.
With the U.S. Supreme Court throwing out the lawsuit against the Affordable Care Act (ACA) in June – thereby guaranteeing the ACA’s continuation as law of the land – compliance professionals should be aware that there are kettles brewing in Washington that could cause America’s corporations to face tens of millions of dollars in IRS penalties for not complying with the act’s Employer Shared Responsibility Payments (ESRP) provision:
- Proposed sunsetting of the good faith reporting standard,
- The Biden administration continuing to propose an increase in the IRS budget to ensure compliance with tax laws by corporations (along with high-income individuals),
- The IRS declaration that there is no statute of limitations for ACA ERSP, and
- The Treasury Inspector General for Tax Administration (TIGTA) placing public pressure on the IRS to collect more in ACA ESRP penalties.
A closer look at each of these bubbling cauldrons shows how they can affect your ACA compliance.
Proposed Sunsetting of the Good Faith ESRP Reporting Relief
When the ACA was established more than 10 years ago, the IRS initiated what…
