We received your Form 990-T, Exempt Organization Business Income Tax Return and Form 8941, Credit for Small Employer Health Premiums
However, we reduced your credit based on the following:
In accordance with the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic reductions take place as of March 1, 2013.
These required reductions include a reduction to the refundable portion of the Small Business Health Care Tax Credit for certain small tax-exempt employers under Internal Revenue Code Section 45R.
As a result, the refundable portion of your claim will be reduced 8.7% percent. The sequestration reduction rate will be applied until the end of the fiscal year (September 30, 2013), or intervening Congressional action, at which time the sequestration rate is subject to change.
What you need to do
- No action is required
Answers to Common Questions
Can I appeal the decision to reduce my refund?
Reduction in the amount of your refund is required of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended and can't be appealed.
How to get help
- Call the 800, 866 or 888 number listed on the top right corner of your notice.
- Authorize someone (such as an accountant) to contact the IRS on your behalf using Form 2848, Power of Attorney and Declaration of Representative (PDF).
- See if you qualify for help from a Low Income Taxpayer Clinic.