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The IRS released an information letter which confirms that the employer shared responsibilities or pay or play penalties continue to apply for applicable large employers (ALEs) that fail to offer acceptable health insurance coverage to their full-time employees and dependents.
The letter also indicates that the law doesn’t provide for any waiver for the penalties and reiterates that no transition relief is available for 2017 and future years.
Trump’s 2017 executive order broadly directed federal agencies to waive, delay, or grant exemptions from Affordable Care Act (ACA) requirements that may pose a financial burden. However, the executive order did not provide guidance about any particular ACA requirement or provision and doesn’t change any existing regulations.
The letter reiterates that the executive order does not change the law. ACA provisions are still effective until changed by Congress. Taxpayers are still required to follow the ACA, including paying any applicable penalties they may owe.
For more information, download the bulletin.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
