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.
- You can authorize someone to contact the IRS on your behalf.
- See if you qualify for help from a Low Income Taxpayer Clinic.
If you can’t find what you need online, you can call the IRS at the 800, 866, or 888 number listed on the notice.