Change of opinion on IRS granting health plan excise tax penalty relief

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November 1, 2015 by Tony Novak

This post simply documents the change of opinion expressed by The Kiplinger Tax Letter with regard to the likelihood of repeal or modification of IRC 4980D excise tax penalties for small businesses in 2015.

On July 2, 105 Kiplinger wrote

“if the Service does not grant relief, it’s a safe bet that taxwriters will do so”.

On October 23, 2015 the same newsletter wrote:

“Will firms that reimburse workers get more relief from IRS? It’s unlikely. As we have previously noted, firms with arrangements to reimburse employees for premiums paid for individual health policies or Medicare could be nailed by an excise tax of $100 a day per employee. The agency waived the tax through June 30, 2015, for employers with less than 50 full-time employees. But we don’t expect IRS to issue any more waivers”.

So if we are to expect any relief, it would apparently have to come through legislative action. That also seems increasingly unlikely.

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