Third-Party Administrators and Health Plan Providers

Third-Party Administrators and Health Plan Providers can enroll to become vendors with the Health Coverage Tax Credit Advanced Monthly Program, allowing their members to receive the benefit of the monthly Health Coverage Tax Credit.

Review the requirements for participation in the 2019 Advance Monthly Payment program. HPAs and TPAs must complete new IRS Form 3881-A, ACH Vendor/Miscellaneous Payment Enrollment, to enroll and begin receiving HCTC payments. The form must be filled out completely and signed by the appropriate person at your company.

Administrators must be enrolled in the EFT program to receive premium payments for your customers who are participants in the HCTC program.  Receiving electronic payments ensures timely, accurate payments and reduces the risk of payments being misdirected within the HPA’s organization.

HPAs and TPAs must complete new IRS Form 3881-A, ACH Vendor/Miscellaneous Payment Enrollment, to enroll and begin receiving HCTC payments. The form must be filled out completely and signed by the appropriate person at your company.

Send the completed form to the IRS by email to wi.hctc.stakehldr.en@irs.gov.

If the form is not complete, you will be notified, through email, of missing required fields.  Once the forms are complete, you can resubmit by email to wi.hctc.stakehldr.en@irs.gov.

Enrolling to receive HCTC payments is a one-time process. You will not need to enroll each time one of your members applies for the Advance Monthly Payment program of the HCTC.

Once an HPA/TPA has sent the Form 3881-A, and is established to receive payments and has a vendor number, they do NOT need to submit another Form 3881-A if additional individuals want to participate after the HPA/TPA is established.

However, an HPA/TPA must recertify each year.

HCTC payee information relevant to financial transactions are revalidated on an annual basis.  You will need to provide a new Form 3881-A each year for renewal.  Your renewal date will be 365 days from the date of your vendor account was established.  If renewals are not received, your vendor account may be deactivated.

You will be informed if you have additional steps to complete for your HCTC enrollment.

It is the administrator’s responsibility to keep this information current with the HCTC program at all times. Keeping current will help the HCTC program minimize delays when issuing payments, reduce the number of payments sent to incorrect remit to addresses and/or banks, and ensure all other communications are forwarded to the correct contact and/or address.

When an administrator changes banks or updates existing banking information, it must follow the steps below to ensure the HCTC program has the most current information:

  • Contact IRS to notify the HCTC program of the changes.
  • Send IRS an updated Form 3881-A, ACH Vendor/Miscellaneous Payment Enrollment Form, with corrections at least 30 days prior to the effective date of the changes, to the Internal Revenue Service by email to: wi.hctc.stakehldr.en@irs.gov.

The HPA must contact IRS immediately if any of the following administrative changes occur:

  • Payment Detail Report (PDR) recipient name and/or address
  • Contact information for the HCTC program
  • HPA/TPA "remit to" address
  • HPA/TPA name change

Use Form 13560, Health Plan Administrator (HPA) Return of Funds, to return the Government’s portion of the insurance premium ONLY. The participant’s portion must be returned directly to the participant.

Complete the form and include it with your payment. The form must have the breakdown of funds by participant and reason for return. This form MUST accompany all returned funds, in order to ensure proper handling. If your organization uses a similar form that provides ALL information requested below, submission of your internal document in lieu of this form is acceptable.

Return funds using one of the following applicable options:

  • Send an HPA check (with company name and address): Make check payable to US Treasury - HCTC.
  • Complete Form 13560, attach check, and mail to:

             Internal Revenue Service
             Beckley Finance Center
             PO Box 9002
             Beckley WV 25802-9002

  • Reversal of an EFT transaction: Notify your bank that you want to reject the EFT, and request that they reverse the transaction back to the US Department of Treasury. Complete Form 13560 and FAX to: Internal Revenue Service - HCTC FAX #: 855-780-9044
  • Return an uncashed US Treasury check: Complete Form 13560, attach check, and mail to:

             Internal Revenue Service
             Beckley Finance Center
             PO Box 9002
             Beckley WV 25802-9002

You can return funds for multiple individuals by using one of the following options:

  • Send a separate check and separate Form 13560, Health Plan Administrator (HPA) Return of Funds, or an internal document for each individual
  • Send one check as a bulk payment and attach a detailed list that defines how the bulk payment should be allocated. This list must include all information that is required on the HPA Return of Funds form for each individual for whom you are returning funds.

IRS will issue Form 1099-H.Health Coverage Tax Credit (HCTC) Advance Payments to all 2018/2019 participants that received Advance Monthly Payments.

Notice 2004-47, 2004-29 I.R.B. 48 provides that the IRS as an administrator of the HCTC, will file the required returns and furnish statements to the recipients unless you elect to file and furnish information returns and statements on your own. Contact the HCTC Program for this purpose by emailing the HCTC Program at wi.hctc.stakeholdr.en@irs.gov. Unless you notify the HCTC Program of your intent to file information returns and furnish statements, you will be considered to have elected to have the HCTC Program file Forms 1099-H and furnish statements to recipients in satisfying Section 6050T filing and furnishing requirements.

Waiver of penalties. Section 6724(a) authorizes the IRS to waive any penalties under Sections 6721 and 6722 for failure to comply with the reporting requirements of Section 6050T if such failures resulted from reasonable cause and not willful neglect. The HCTC Program will furnish a copy of Form 1099-H or an acceptable substitute statement to each recipient on your behalf, unless you elect to file Form 1099-H and furnish the copy or substitute statement yourself. The IRS will not assert the penalties imposed by Sections 6721 and 6722 for information returns and statements required to be filed and furnished under Section 6050T against you if you allow the HCTC Program to file and furnish Forms 1099-H. If you elect not to allow the HCTC Program to file and furnish Forms 1099-H, the general rules for seeking a penalty waiver under Section 6724(a) apply. See Regulations Section 301.6724-1.

Due to the recent government shutdown, there will be a delay in 1099-H mail-outs.  Form 1099-H reflects the months that you made payments through the Advance Monthly Payment Program.   This form is informational and assists in the filing of Form 8885 (Health Coverage Tax Credit).  You should still be able to file your individual income tax return based on your own records and those of your Health Plan Provider.

Please note, we cannot issue a Form 1099-H based on when the payments were applied as each Health Plan Administrator (HPA)/ Third Party Administrator (TPA) determines how to apply the payments they have received. Please contact your administrator if you have questions about how the payments were applied. 
 

 

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