The IRS recently provided notice 2020-44 announcing the new PCORI fees for plan years from October 2019 through October 2020. The new fee is an increase of $0.09, from $2.45 to $2.54. While this amount is important to know, it is essential to understand what PCORI fees are and how they affect your ACA Employer Reporting.

PCORI stands for Patient-Centered Outcomes Research Institute. The Patient-Centered Outcomes Research Trust Fund fee is a tax on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans. It assists in funding the institute. Imposed by §§ 4375 and 4376 of...

Let's take it back a few years...eight to be more specific. Nearly eight years ago the Supreme Court dismissed a challenge to the constitutionality of the individual mandate of the Affordable Care Act. In the middle of a presidential election, a split court ruled the ACA individual mandate was not "unconstitutional" and therefore, all Americans would be required to have health insurance, or pay a fine.

Now, as we are in the midst of another presidential election, the House of Representatives asked the Supreme Court to reaffirm that the...

The IRS released the draft instructions for Forms 1094-C and 1095-C on November 13, 2019. And while many, including us, believe there would be some changes due to the reduction of the Individual Mandate to zero dollars, the draft showed little to no changes compared to the previous year.

The changes made in the instructions refer mainly to numerical figures that change year-to-year due to inflation. On page six, the second column section, “Information reporting penalties,” states the total penalty charged for a calendar year will not exceed $3,339,000, a $64,000 increase from 2018. Another noted change is found on...

Think back to when you were in college.  Did you have that one class that didn't seem important?  Maybe it was a requirement for first-year students. Perhaps it was a general education course that just couldn't hold your interest.  Yet, when you turned in the final exam, you had a feeling your lack of effort and interest would come back to haunt you.  Then, your grade posted, and it haunted your GPA for the next four years!

Meet the 226J letter from the IRS.  It is the threat that has...