The Internal Revenue Service issued a notice Monday saying it is developing guidance on integrated health reimbursement arrangements and how taxpayers and businesses can avoid extra penalties and payments.
The notice relates to a recent set of proposed regulations expanding the usability of health reimbursement arrangements by lifting the current prohibition on integrating HRAs with individual health insurance if certain conditions are met. That would enable employers to offer their workers integrated HRAs instead of the more traditional group health plans.
Notice 2018-88 asks for comments on some of the potential approaches the Treasury Department and the IRS could use to help employers understand how to structure integrated HRAs to avoid assessable payments under section 4980H of the tax code and the potential loss of the exclusion from income for employer-provided health benefits under section 105(h).
The proposed regulations also describe when individuals who are offered coverage under an integrated HRA, but are otherwise eligible for a premium tax credit, would still be eligible for the tax credit. The proposed regulations do raise issues, however, concerning the application of the employer shared responsibility provisions of the Affordable Care Act and section 105(h), which addresses discriminatory self-insured group health plans, to employers who offer integrated HRAs and their employees.
The bill, whose revised text was just released by the Senate, includes a number of significant tax provisions for both corporate taxpayers and nonprofits.
RSM announced the launch of myRSM Tax, a suite of proprietary platforms that work together using AI to reduce manual processes, accelerate insight generation and ensure transparency.
While it might intuitively seem AI and offshoring are in direct competition, offshore talent providers report that the two have instead created powerful synergies.
