I 
117TH CONGRESS 
1ST SESSION H. R. 5318 
To streamline the employer reporting process and strengthen the eligibility 
verification process for the premium assistance tax credit and cost- 
sharing subsidy. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 21, 2021 
Mr. THOMPSON of California (for himself and Mr. SMITH of Nebraska) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on Energy and Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To streamline the employer reporting process and strengthen 
the eligibility verification process for the premium assist-
ance tax credit and cost-sharing subsidy. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Commonsense Report-
ing Act of 2021’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) The Department of the Treasury and the 
Internal Revenue Service should work together with 
other relevant departments and agencies to identify 
and implement methods to minimize compliance bur-
dens on businesses, insurance carriers, and individ-
uals. 
(2) Such collaboration should strike an appro-
priate balance between sufficient reporting to en-
force the law and protecting the privacy of individ-
uals. 
SEC. 3. VOLUNTARY PROSPECTIVE REPORTING SYSTEM. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of the 
Treasury, in consultation with the Secretary of Health and 
Human Services, the Secretary of Labor, and the Admin-
istrator of the Small Business Administration, shall de-
velop and implement guidance providing for a prospective 
reporting system meeting the requirements of subsection 
(b). Such system shall be available for use by employers 
on a voluntary basis beginning not later than January 1, 
2022. 
(b) REQUIREMENTS.—The system created under sub-
section (a) shall include— 
(1) voluntary reporting by each participating 
employer that offers minimum essential coverage to 
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its full-time employees and their dependents under 
an eligible employer-sponsored plan, not later than 
45 days before the first day of the annual open en-
rollment period under section 1311(c)(6)(B) of the 
Patient Protection and Affordable Care Act (42 
U.S.C. 18031(c)(6)(B)) for each calendar year, of— 
(A) the name and employer identification 
number for purposes of section 6056 of the In-
ternal Revenue Code of 1986 of the employer; 
(B) a certification of— 
(i) whether coverage meeting the defi-
nition of minimum essential coverage in 
section 5000A(f) of the Internal Revenue 
Code of 1986 is offered to the full-time 
employees (within the meaning of section 
4980H of such Code) of the employer; 
(ii) whether such coverage is offered 
to part-time employees of the employer; 
(iii) whether such coverage is offered 
to dependents of employees; 
(iv) whether such coverage is offered 
to spouses of employees; 
(v) whether such coverage meets the 
minimum value requirement of section 
36B(c)(2)(C)(ii) of such Code; 
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(vi) whether such coverage satisfies 
the requirements to qualify for one of the 
affordability safe harbors promulgated by 
the Secretary of the Treasury for purposes 
of section 4980H of such Code; and 
(vii) whether the employer reasonably 
expects to be liable for any shared respon-
sibility payment under section 4980H of 
such Code for such year; 
(C) the months during the prospective re-
porting period that such coverage is available to 
individuals described in clauses (i) through (iv) 
of subparagraph (B); 
(D) what waiting periods, if any, apply 
with respect to such coverage; and 
(E) a list of all employer identification 
numbers of the employer for entities that em-
ploy employees within the employers control 
group under subsection (b), (c), (m), or (o) of 
section 414 of the Internal Revenue Code for 
1986; 
(2) processes necessary to ensure that Ex-
changes, the Federal Marketplace Data Services 
Hub, and the Internal Revenue Service can securely 
and confidentially access the information described 
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in paragraph (1) as necessary to carry out their re-
spective missions, and to provide to the Secretary of 
Health and Human Services additional information 
relating to eligibility determinations for advance pay-
ment of the premium tax credits under section 36B 
of such Code and the cost-sharing subsidies under 
section 1402 of the Patient Protection and Afford-
able Care Act (42 U.S.C. 18071); 
(3) a process to allow Exchanges to follow up 
with employers in order to obtain additional reason-
ably necessary information relating to an employee’s 
eligibility for such advance payment or such cost- 
sharing subsidies, and to allow an employee to re-
ceive notification of any problem in verifying such 
eligibility; and 
(4) a process to allow employers using the sys-
tem to provide timely updates to the Federal Mar-
ketplace Data Services Hub regarding any cancella-
tion of coverage or significant change in coverage for 
participating employees that would change the infor-
mation reported under paragraph (1). 
(c) EMPLOYER NOTIFICATION OF EMPLOYEE EN-
ROLLMENT IN EXCHANGE PLANS.—Subparagraph (J) of 
section 1311(d)(4) of the Patient Protection and Afford-
able Care Act (42 U.S.C. 18031(d)(4)(J)) is amended by 
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striking ‘‘to each employer’’ and all that follows through 
‘‘(and the effective date of such cessation); and’’ and in-
serting ‘‘to each employer— 
‘‘(i) the name of each employee of the 
employer who enrolls in a qualified health 
plan for a plan year, or whose dependents 
enroll in such a plan, at the time of such 
enrollment; or 
‘‘(ii) the name of each employee of the 
employer described in subparagraph (I)(ii) 
who ceases coverage under a qualified 
health plan during a plan year (and the ef-
fective date of such cessation); and’’. 
(d) EXEMPTION FROM REPORTING REQUIREMENT 
UNDER INTERNAL REVENUE CODE OF 1986.—Section 
6056 of the Internal Revenue Code of 1986 is amended 
by redesignating subsection (f) as subsection (g) and by 
inserting after subsection (e) the following new subsection: 
‘‘(f) EXEMPTION.—If, through the system created 
pursuant to section 3(a) of the Commonsense Reporting 
Act of 2021, an employer provides prospective reporting 
for any calendar year that meets the requirements of sec-
tion 3(b)(1) of such Act, such employer shall be treated 
as satisfying the return requirements of subsections (a), 
(b), and (c) for such year.’’. 
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(e) THIRD-PARTY FILING.—An employer may con-
tract with a third party to make the report under sub-
section (b)(1) without affecting the employer’s treatment 
as having satisfied the return requirements of subsections 
(a) and (b) of section 6056 of the Internal Revenue Code 
of 1986. 
(f) ACCESS TO THE NATIONAL DIRECTORY OF NEW 
HIRES.—Subsection (i)(3) of section 453 of the Social Se-
curity Act (42 U.S.C. 653) is amended by adding at the 
end the following new sentence: ‘‘The Secretary of the 
Treasury and the Secretary of Health and Human Serv-
ices shall have access to the information in the National 
Directory of New Hires for purposes of administering sec-
tion 36B and 4980H of the Internal Revenue Code of 
1986 and section 1402 of the Patient Protection and Af-
fordable Care Act (42 U.S.C. 18071). Subsection (k)(3) 
shall not apply to information received for purposes of the 
administration of such sections 36B and 4980H of such 
Code and section 1402 of such Act.’’. 
(g) IMPROVING EMPLOYEE ACCESS TO ACCURATE 
EINS.—Not later than 1 year after the date of the enact-
ment of this Act, the Secretary of the Treasury shall de-
velop and implement guidance for allowing any employee 
of an employer to receive, on request, the employer’s em-
ployer identification number for purposes of section 6056 
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of the Internal Revenue Code of 1986. Employers shall 
provide the employer’s employer identification number for 
purposes of section 6056 of the Internal Revenue Code 
of 1986 on employee pay statements. 
(h) FUNDING FOR VOLUNTARY PROSPECTIVE RE-
PORTING SYSTEM.—There is authorized to be appro-
priated to the Secretary of the Treasury, the Secretary 
of Health and Human Services, the Secretary of Labor, 
and the Administrator of the Small Business Administra-
tion such sums as are necessary to carry out this section. 
SEC. 4. PROTECTION OF DEPENDENT PRIVACY. 
(a) IN GENERAL.—Paragraph (1) of section 6055(b) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following flush sentence: 
‘‘For purposes of subparagraph (B)(i), in the case of 
an individual other than the primary insured, if the health 
insurance issuer or the employer is unable to collect or 
maintain information on the TINs of such individuals 
(other than for purposes of this section), the Secretary 
may allow the individual’s full name and date of birth to 
be substituted for the name and TIN. In the event the 
Secretary allows the use of the individual’s full name and 
date of birth in lieu of the TIN, the Social Security Ad-
ministration shall assist the Internal Revenue Service in 
providing data matches to determine the TIN associated 
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with the name and date of birth provided by the Internal 
Revenue Service with respect to such individual.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns the due date for which 
is after the date that is 60 days after the date of the enact-
ment of this Act. 
SEC. 5. ELECTRONIC STATEMENTS. 
(a) IN GENERAL.—Subsection (c) of section 6056 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(3) ELECTRONIC
DELIVERY.—An individual 
shall be deemed to have consented to receive the 
statement under this subsection in electronic form if 
such individual has affirmatively consented at any 
prior time, to the person who is the employer of the 
individual during the calendar year to which the 
statement relates, to receive such statement in elec-
tronic form. The preceding sentence shall not apply 
if the individual revokes consent in writing with re-
spect to the statement under this subsection.’’. 
(b) STATEMENTS RELATING TO HEALTH INSURANCE 
COVERAGE.—Subsection (c) of section 6055 of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
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‘‘(3) ELECTRONIC
DELIVERY.—An individual 
shall be deemed to have consented to receive the 
statement under this subsection in electronic form if 
such individual has affirmatively consented at any 
prior time, to the person required to make such 
statement (such as the provider of the individual’s 
health coverage), to receive in electronic form any 
private health information (such as electronic health 
records), unless the individual revokes such consent 
in writing.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to statements the due date for 
which is after December 31, 2021. 
SEC. 6. TIME FOR APPEAL. 
(a) IN GENERAL.—Section 4980H(d) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(4) TIME FOR APPEAL.—The Secretary shall 
allow an applicable large employer 90 days from the 
date on which notice and demand is issued under 
paragraph (1) to such applicable large employer to 
appeal the assessment of any assessable payment 
provided by this section.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to assessments in taxable years be-
ginning after the date of the enactment of this Act. 
SEC. 7. STATUTE OF LIMITATIONS ON PENALTY ASSESS-
MENT. 
(a) IN GENERAL.—Section 4980H(d) of the Internal 
Revenue Code of 1986, as amended by section 6, is 
amended by adding at the end the following new para-
graph: 
‘‘(5) STATUTE OF LIMITATIONS ON PENALTY 
ASSESSMENT.—With respect to an assessment of an 
assessable payment under paragraph (1), the statu-
tory period for such assessment shall expire at the 
end of the 3-year period beginning on the date on 
which such assessable payment should have been 
made, as determined by the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to assessments in taxable years be-
ginning after the date of the enactment of this Act. 
SEC. 8. GAO STUDIES. 
(a) STUDY OF FIRST YEARS OF EMPLOYER REPORT-
ING.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study that evalu-
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ates, with respect to the period beginning on Janu-
ary 1, 2015, and ending on December 31, 2020— 
(A) the notification of employers by Ex-
changes established under title I of the Patient 
Protection and Affordable Care Act (Public 
Law 111–148) that a full-time employee of the 
employer has been determined eligible for ad-
vance payment of premium tax credits under 
section 36B of the Internal Revenue Code of 
1986 or cost-sharing subsidies under section 
1402 of such Act (42 U.S.C. 18071), including 
information regarding— 
(i) the data elements included in the 
employer notification; 
(ii) the process by which the notifica-
tion forms were developed and sent to em-
ployers, including whether the process pro-
vided for a formal notice and comment pe-
riod; 
(iii) whether employers report that 
such notifications provided sufficient and 
relevant information for them to make ap-
propriate decisions about whether to utilize 
the appeals process; 
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(iv) the total number of notifications 
sent to employers and the timeline of when 
such notifications were sent; 
(v) differences in the notification proc-
ess between the marketplace facilitated by 
the Federal Government and the State- 
Based Marketplaces; and 
(vi) challenges that have arisen in the 
notification process, and recommendations 
to address these challenges; and 
(B) the extent to which the Secretary of 
Health and Human Services has established a 
separate appeals process for employers who re-
ceived such a notification to challenge the eligi-
bility determination, as required by section 
1411(f)(2) of the Patient Protection and Af-
fordable Care Act (42 U.S.C. 18081(f)(2)). 
(2) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller 
General shall submit to the Committees on Finance 
and Health, Education, Labor, and Pensions of the 
Senate and the Committees on Ways and Means, 
Energy and Commerce, and Education and Labor of 
the House of Representatives a report on the results 
of the study conducted under paragraph (1). 
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(b) STUDY OF PROSPECTIVE REPORTING SYSTEM.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study that evalu-
ates, with respect to the period beginning on Janu-
ary 1, 2022, and ending on December 31, 2022, the 
functionality of the prospective reporting system es-
tablished pursuant to section 3, including the accu-
racy of information collected, the number of employ-
ers electing to report under such system, and any 
challenges that have arisen in implementing such 
system. 
(2) REPORT.—Not later than July 1, 2023, the 
Comptroller General shall submit to the Committees 
on Finance and Health, Education, Labor, and Pen-
sions of the Senate and the Committees on Ways 
and Means, Energy and Commerce, and Education 
and Labor of the House of Representatives a report 
on the results of the study conducted under para-
graph (1). 
SEC. 9. TAX COMPLIANCE. 
(a) IN GENERAL.—Section 6724(d)(1)(B)(xxv) of the 
Internal Revenue Code of 1986 is amended by inserting 
‘‘or, in the case of an employer to which section 6056(f) 
applies, section 3(b)(1) of the Commonsense Reporting 
Act of 2021’’ before ‘‘, or’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns required to be filed after 
the date of the enactment of this Act. 
Æ 
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