Notice of Possible Approaches to dealing with High Cost Health Coverage

Notice 2015-16 discusses possible approaches that the IRS may use in dealing with high cost health insurance for purposes of the excise tax under Section 4980I.

Document Excerpt

 This notice is intended to initiate and inform the process of developing regulatory guidance regarding the excise tax on high cost employer-sponsored health coverage under § 4980I of the Internal Revenue Code (Code). Section 4980I, which was added to the Code by the Affordable Care Act,1 applies to taxable years beginning after December 31, 2017. Under this provision, if the aggregate cost of “applicable employer-sponsored coverage” (referred to in this notice as applicable coverage) provided to an employee exceeds a statutory dollar limit, which is revised annually, the excess is subject to a 40% excise tax.

 

 

 

Link

http://www.irs.gov/pub/irs-drop/n-15-16.pdf

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