Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / Proposed Rules 27141 

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. 

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, Richard.A.

Hurst@irscounsel.treas.gov, 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 

§ 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 § 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 


srobinson on DSKHWCL6B1PROD with PROPOSALS2
27142 Federal Register / Vol. 75, No. 92 / Thursday, May 13, 2010 / Proposed Rules 

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: 

§ 54.9815–2714 Eligibility of children until 

at least age 26. 

[The text of proposed § 54.9815–2714 

is the same as the text of § 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 


srobinson on DSKHWCL6B1PROD with PROPOSALS2