IRS Releases Draft Forms for ObamaCare

The Internal Revenue Service released draft versions Thursday of several forms for employers and individuals to comply with the Affordable Care Act, along with draft versions of more common forms such as the 1040 and 1040EZ for next filing season.

Form 1094-B, the draft form for Transmittal of Health Coverage Information Returns, is a short form that asks  for the filer’s name, Employer Identification Number, the name of the person to contact and their contact information, along with the number of Forms 1095-B submitted with the transmittal.

Form 1094-C, a draft version of the Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, asks for information about the “applicable large employer member,” or ALE member. An “applicable large employer” is considered to be an employer with 50 or more full-time employees or full-time equivalent employees.

Form 1095-A provides a draft form for the Health Insurance Marketplace Statement, which asks for information about the recipient and the coverage household, including covered individuals, their dates of birth, coverage periods, monthly premium amounts, the monthly premium amount of the “second lowest cost silver plan” (which is used as a benchmark for determining the Premium Tax Credits available to members of a household), the amount of the monthly advance payment of the Premium Tax Credit, along with other details.

Form 1095-B, a draft version of the Health Coverage form, requests information about the “responsible individual,” or policy holder, along with information on employer-sponsored coverage (such as the employer’s name, address and Employer Identification Number), and a section on the covered individuals.

Form 1095-C is the draft form for Employer-Provided Health Insurance Offer and Coverage. It includes spaces for the offer of coverage, the employee share of lowest cost monthly premium for self-only minimum value coverage, along with fields for the covered individuals and their Social Security numbers.

Form 8941, the draft form for the Credit for Small Employer Health Insurance Premiums, asks questions such as whether the employer paid premiums during the tax year for employee health insurance coverage provided through a Small Business Health Options Program Marketplace or if the employer qualifies for an exception to this requirement. The form relies on information from worksheets for calculating full-time equivalent employees, state premium subsidies and other information.

Form 8962, a draft version of the Premium Tax Credit form, includes sections for the annual and monthly contribution amount, the Premium Tax Credit claim and a reconciliation that must be performed of any advance payment of the Premium Tax Credit, repayment of excess advance payment of the Premium Tax Credit, shared policy allocations, and an alternative calculation for the year of marriage.

Form 8965, a draft version of the form for Health Coverage Exemptions, is for people who have been granted a coverage exemption from one of the marketplace for health insurance plans. The form requests Social Security numbers and exemption certificate numbers of any individuals who have been granted exemptions. It also asks whether they are claiming a hardship exemption or other coverage exemption because their household income or gross income falls below a filing threshold.

The IRS is offering the opportunity to comment on the draft forms. Instructions are not yet aavilable for all the forms.

The IRS also posted on Thursday new draft versions of several other common forms for 2014, including Form 1040 and Form 1040-A, U.S. Individual Income Tax Return; Form 1040EZ, Income Tax Return for Single and Joint Filers with No Dependents; and Form 1099-DIV, Dividends and Distributions. In addition, the IRS posted a draft of the 2015 Form 1099-INT, Interest Income, and the 2015 Form 1099-OID, Original Issue Discount, information reporting forms.

Also on Thursday, the IRS issued several revenue procedures and a notice related to the Affordable Care Act.

Revenue Procedure 2014-37 provides the methodology to determine the applicable percentage table in Section 36B(b)(3)(A) of the Internal Revenue Code used to calculate an individual’s premium assistance credit amount for taxable years beginning after calendar year 2014.  It also provides the methodology to determine the required contribution percentage in Section 36B(c)(2)(C)(i)(II) used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage for purposes of Section 36B for plan years beginning after calendar year 2014. In addition, Revenue Procedure 2014-37 reproduces the required contribution percentage, as determined under guidance issued by the Department of Health and Human Services, used to determine whether an individual is eligible for an exemption from the individual shared responsibility payment because of a lack of affordable minimum essential coverage under Section 5000A(e)(1)(A) for plan years beginning after calendar year 2014.

Revenue Procedure 2014-41 provides calculation methods a taxpayer may use to resolve the interrelationship between the Section 162(l) deduction and the Premium Tax Credit under Section 36B. It provides an iterative calculation and alternative calculation taxpayers may use, as well as examples demonstrating the calculations.

Revenue Procedure 2014-46 provides the 2014 monthly national average premium for qualified health plans that have a bronze level of coverage for taxpayers to use in determining their maximum individual shared responsibility payment under Section 5000A(c)(1)(B) of the Internal Revenue Code and Section 1.5000A-4 of the Income Tax Regulations.  This revenue procedure also provides an explanation of the methodology used to determine the monthly national average premium amount.

Notice 2014-42 provides procedural guidance relating to the annual fee imposed on branded prescription drug manufacturers and importers under Section 9008 of the ACA.

The IRS said the revenue procedures and notice will appear in Internal Revenue Bulletin 2014-33, dated Aug. 11, 2014.

In addition, the IRS posted the final and temporary regulations for the Premium Tax Credit in TD 9683.

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