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[Federal Register Volume 75, Number 92 (Thursday, May 13, 2010)]
[Proposed Rules]
[Pages 27141-27142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11393]

Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / 
Proposed Rules

[[Page 27141]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 54

[REG-114494-10]
RIN 1545-BJ45

Group Health Plans and Health Insurance Issuers Providing 
Dependent Coverage of Children to Age 26 Under the Patient Protection 
and Affordable Care Act

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: Elsewhere in this issue of the Federal Register, the IRS is 
issuing temporary regulations under the provisions of the Patient 
Protection and Affordable Care Act (the Affordable Care Act) dealing 
with coverage of dependent children to age 26. The IRS is issuing the 
temporary regulations at the same time that the Employee Benefits 
Security Administration of the U.S. Department of Labor and the Office 
of Consumer Information and Insurance Oversight of the U.S. Department 
of Health and Human Services are issuing substantially similar interim 
final regulations with respect to group health plans and health 
insurance coverage offered in connection with a group health plan under 
the Employee Retirement Income Security Act of 1974 and the Public 
Health Service Act. The temporary regulations provide guidance to 
employers, group health plans, and health insurance issuers providing 
group health insurance coverage. The text of those temporary 
regulations also serves as the text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by August 11, 2010.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-114494-10), room 
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered to: 
CC:PA:LPD:PR (REG-114494-10), Courier's Desk, Internal Revenue Service, 
1111 Constitution Avenue, NW., Washington, DC 20224. Alternatively, 
taxpayers may submit comments electronically via the Federal 
eRulemaking Portal at http://www.regulations.gov (IRS REG-114494-10).

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Karen 
Levin at 202-622-6080; concerning submissions of comments, 
[email protected], 202-622-7180 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collection of information should be 
sent to the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, 
Washington, DC 20224. Comments on the collection of information should 
be received by July 12, 2010. Comments are specifically requested 
concerning:
     Whether the proposed collection of information is 
necessary for the proper performance of the functions of the Internal 
Revenue Service, including whether the information will have practical 
utility;
     The accuracy of the estimated burdens associated with the 
proposed collection of information (see the preamble to the temporary 
regulations published elsewhere in this issue of the Federal Register);
     How to enhance the quality, utility, and clarity of the 
information to be collected;
     How to minimize the burden of complying with the proposed 
collection of information, including the application of automated 
collection techniques or other forms of information technology; and
     Estimates of capital or start-up costs and costs of 
operation, maintenance, and purchase of services to provide 
information.
    The collection of information is in Sec.  54.9815-2714T(f) (see the 
temporary regulations published elsewhere in this issue of the Federal 
Register). The temporary regulations require that group health plans 
and group health insurance coverage offer an enrollment opportunity 
(including written notice of the enrollment opportunity) to certain 
individuals who did not obtain coverage under a group health plan or 
group health insurance coverage prior to the effective date of 
amendments made by the Affordable Care Act to section 2714 of the 
Public Health Service Act (which is incorporated by reference into 
section 9815 of the Code). The individuals to whom the enrollment 
opportunity must be given are those who were not eligible for dependent 
coverage of a child below the age of 26 but, after the effective date 
of section 2714 of the Public Health Service Act, are entitled to be 
eligible for coverage under a group health plan or group health 
insurance coverage. The likely respondents are business or other for-
profit institutions, and nonprofit institutions. Responses to this 
collection of information are mandatory.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    The temporary regulations published elsewhere in this issue of the 
Federal Register add Sec.  54.9815-2714T to the Miscellaneous Excise 
Tax Regulations. The proposed and temporary regulations are being 
published as part of a joint rulemaking with the Department of Labor 
and the Department of Health and Human Services (the joint rulemaking). 
The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It has also 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to this proposed regulation. It is 
hereby certified that the collection of information contained in this 
notice of proposed rulemaking will not have a significant impact on a 
substantial number of small entities. Accordingly, a regulatory 
flexibility analysis is not required. The temporary regulations require 
both group health insurance issuers and group health plans to provide a 
notice of opportunity to enroll to certain individuals who, prior to 
the effective date of the amendments made to section 2714 of the Public 
Health Service Act, were not eligible to enroll for dependent coverage 
of children but

[[Page 27142]]

who are eligible after those amendments take effect. Under the 
temporary regulations, if a health insurance issuer satisfies this 
notice obligation, it is satisfied not just for the issuer but also for 
the group health plan. For group health plans maintained by small 
entities, it is anticipated that the health insurance issuer will 
satisfy this notice obligation for both the plan and the issuer in 
almost all cases. For this reason, the information collection 
requirement will not impose a significant impact on a substantial 
number of small entities. For further information and for analyses 
relating to the joint rulemaking, see the preamble to the joint 
rulemaking. Pursuant to section 7805(f) of the Internal Revenue Code, 
this regulation has been submitted to the Chief Counsel for Advocacy of 
the Small Business Administration for comment on its impact on small 
business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) or electronic comments that are submitted timely 
to the IRS. Comments are specifically requested on the clarity of the 
proposed regulations and how they may be made easier to understand. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by a person that 
timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these proposed regulations is Karen Levin, 
Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and 
Government Entities), IRS. The proposed regulations, as well as the 
temporary regulations, have been developed in coordination with 
personnel from the U.S. Department of Labor and the U.S. Department of 
Health and Human Services.

List of Subjects in 26 CFR Part 54

    Excise taxes, Pensions, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 54 is proposed to be amended as follows:

PART 54--PENSION EXCISE TAXES

    Paragraph 1. The authority citation for part 54 is amended by 
adding an entry in numerical order to read as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 54.9815-2714 also issued under 26 U.S.C. 9833. * * *

    Par. 2. Section 54.9815-2714 is added to read as follows:

Sec.  54.9815-2714  Eligibility of children until at least age 26.

    [The text of proposed Sec.  54.9815-2714 is the same as the text of 
Sec.  54.9815-2714T published elsewhere in this issue of the Federal 
Register].

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2010-11393 Filed 5-10-10; 4:15 pm]
BILLING CODE 4830-01-P
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