Relief for Small Employers Claiming the Section 45R Credit but without Access to Small Business Plans

Notice 2018-27 provides relief for small businesses that properly claimed the Section 45R credit for 2016 or later but were unable to obtain qualified health plan through a Small business Health Options Program (SHOP) because the employer’s principal business address is in a county in which a qualified health plan though a SHOP is not available.

Document Excerpt

This notice provides guidance on section 45R of the Internal Revenue Code (Code). Specifically, this notice provides relief for employers that properly claimed a credit under section 45R (the credit) for all or part of the 2016 taxable year, or that properly claim the credit for all or part of a later taxable year, but are unable to offer employees a qualified health plan (QHP) through a Small Business Health Options Program (SHOP) Exchange for all or part of the remainder of the credit period (as defined in section 45R(e)(2) and the regulations thereunder) because the employer’s principal business address is in a county in which a QHP through a SHOP Exchange is not available. This notice provides that such employers may calculate the credit for such subsequent portion of the credit period by treating health insurance coverage provided for that portion of the credit period as qualifying for the credit if that coverage would have qualified for the credit under the section 45R rules applicable before January 1, 2014.

Link

https://www.irs.gov/pub/irs-drop/n-18-27.pdf

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