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IRS Statement on Health Care Reporting Requirement
For the upcoming 2018 filing season, the IRS will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act. The IRS will not accept the electronic tax return until the taxpayer indicates whether they had coverage, had an exemption or will make a shared responsibility payment. In addition, returns filed on paper that do not address the health coverage requirements may be suspended pending the receipt of additional information and any refunds may be delayed.
To avoid refund and processing delays when filing 2017 tax returns in 2018, taxpayers should indicate whether they and everyone on their return had coverage, qualified for an exemption from the coverage requirement or are making an individual shared responsibility payment. This process reflects the requirements of the ACA and the IRS’s obligation to administer the health care law.
Taxpayers remain obligated to follow the law and pay what they may owe at the point of filing. The 2018 filing season will be the first time the IRS will not accept tax returns that omit this information. After a review of our process and discussions with the National Taxpayer Advocate, the IRS has determined identifying omissions and requiring taxpayers to provide health coverage information at the point of filing makes it easier for the taxpayer to successfully file a tax return and minimizes related refund delays.
Click here for more information about the individual shared responsibility provision.
Information for Your Individual Client
- Publication 5243-Health Care Law Reminder-Affordable Care Act Section 1502(c)
- What is Minimal Essential Coverage (MEC)?
- Does my client qualify for an exemption from MEC?
- What is the Premium Tax Credit?/FAQs/Interactive Tax Assistant (ITA)
- Why it is important to report life & income changes to the Marketplace (Exchange)
- When would my client need to make an Individual Shared Responsibility Payment (ISRP)?/FAQs/Interactive Tax Assistant (ITA)
- Publication 5209 - Preparing your 2014 Return - the shared responsibility payment
- What is a coverage month for the Shared Responsibility Payment? see FAQ 19
- Who is included in a tax household?
- What amounts are included in household income?
- Does my client need to file and pay Net Investment Income Tax?/FAQs
- What documentation or proof of insurance coverage does my client have to provide? See the proof of insurance section on our Gathering Your Health Coverage Documentation page.
Information for Your Business Client
- Excise Tax Moratorium - Consolidated Appropriations Act, 2016 (12/18/2015)
- What are the Employer Shared Responsibility Provisions of ACA?/FAQs
- Is my client an Applicable Large Employer (ALE)?
- Who should my client count as full time employees (FTE)?
- Does your business have 50 or more full-time equivalent (FTE) employees?
- Does your business have fewer than 50 full-time equivalent (FTE) employees?
- Does your client qualify for the Small Business Health Care Tax Credit?
Information Reporting Requirements
- What are the information reporting requirements for applicable large employers?
- Publication 5196 – Affordable Care Act: Reporting Requirements for Applicable Large Employers
- What are the information reporting requirements for Providers of Minimum Essential Coverage?
- Publication 5215 – Affordable Care Act: Responsibilities for Health Coverage Providers
- What are the electronic filing requirements for employers and providers that must file 250 or more ACA Information Returns, Form 1095-B or 1095-C?
- Publication 5165 – Guide for Electronically Filing Affordable Care Act (ACA) Information Returns
Information for Your Payroll Client
- How does my client report Employer Sponsored Health Coverage on Form W-2?
- How does my client report the Additional Medicare Tax on Form W-2? see FAQ 52
- How does my client report the Additional Medicare Tax on Form 941? see FAQ 51
- Affordable Care Act (ACA) Tax Provisions
- Applicable Large Employer Information Center
- Tax Forms, Instructions & Multi-Media
- How does disclosure or use of tax information under Section 7216 relate to ACA?
- Affordable Care Act Return Preparer Best Practices