ACA COMPLIANCE BULLETIN: IRS CONFIRMS ACA PAY OR PLAY PENALTIES STILL APPLY

New Compliance Update.
OVERVIEW

The IRS Office of Chief Counsel recently released an information letter regarding the employer shared responsibility (pay or play) penalties under the Affordable Care Act (ACA). This information letter confirms that the pay or play penalties continue to apply for applicable large employers (ALEs) that fail to offer acceptable health coverage to their full-time employees (and dependents). The information letter also:

  • Indicates that the law does not provide for any waiver of the pay or play penalties; and
  • Reiterates that, while several forms of transition relief were available for 2015 and 2016, no transition relief is available for 2017 and future years.

As a result, taxpayers must continue to follow the law and pay what they owe.

ACTION STEPS

This information letter reiterates the IRS’ position that the ACA’s employer mandate penalties still apply. Individuals and ALEs must continue to comply with this requirement, including paying any penalties that may be owed.

Click the button below to read the full Compliance Bulletin.

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