Employer Reporting Improvement Act

Bill: 118-s-3204
Sponsor: full_name: Sen. Warner, Mark R. [D-VA]
Introduced: 2023-11-02
Policy area: Taxation
Latest action: action_date: 2023-11-02
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2023-11-02
action_desc: Introduced in Senate
text: <p><b>Employer Reporting Improvement Act</b></p> <p>This bill modifies provisions under the Patient Protection and Affordable Care Act that require employers and health insurance providers to prepare tax forms showing proof of minimum essential coverage (1095-B and 1095-C tax forms).</p> <p>Currently, employers and health insurance providers that provide minimum essential coverage must report this information for each covered individual to the Internal Revenue Service (IRS), including the covered individual's Tax Identification Number (TIN). Employers and providers must also send a copy of this information to the covered individual (through 1095-B and 1095-C tax forms) by January 31 of each year. </p> <p>The IRS allows for an individual's date of birth to be substituted for the individual's TIN if the TIN is not available. The IRS also allows employers and providers to offer 1095-B and 1095-C tax forms to individuals electronically. The bill provides statutory authority for these flexibilities. </p> <p>Additionally, under current law, large employers (generally those with 50 or more full-time employees) are subject to an assessment by the IRS if they do not offer affordable minimum essential coverage. The bill requires the IRS to give large employers at least 90 days to respond after sending its first letter about a proposed assessment (Currently, the IRS generally gives 30 days to respond.) It also establishes a six-year statute of limitations for collecting assessments.</p>

tv_txt: II 118th CONGRESS 1st Session S. 3204 IN THE SENATE OF THE UNITED STATES November 2, 2023 Mr. Warner (for himself, Mr. Young , Ms. Cortez Masto , and Mr. Thune ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to streamline and improve the employer reporting process relating to health insurance coverage and to protect dependent privacy.

1. Short title This Act may be cited as the Employer Reporting Improvement Act . 2. TIN reporting flexibility (a) In general Section 6055(b)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush sentence: For purposes of subparagraph (B)(i), in the case of any individual whose name is required to be set forth in a return under subsection (a), if the person required to make a return under such subsection is unable to collect information on the TIN of such individual, the Secretary may allow the individual’s full name and date of birth to be substituted for the name and TIN. . (b) Effective date The amendment made by this section shall apply to returns the due date for which is after December 31, 2024. 3. Electronic statements (a) In general Section 6056(c) 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 electronic form. The preceding sentence shall not apply if the individual revokes such consent in writing. . (b) Statements relating to health insurance coverage Section 6055(c) 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 required to make such statement, to receive such statement in electronic form. The preceding sentence shall not apply if 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, 2024. 4. Time for response (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 response The Secretary shall allow an applicable large employer at least 90 days from the date of the first letter which informs the employer of a proposed assessment of the employer shared responsibility payment under this section to respond to the proposed assessment before taking any further action with respect to such proposed assessment. . (b) Effective date The amendment made by this section shall apply to assessments proposed in taxable years beginning after the date of the enactment of this Act. 5. Statute of limitations on penalty assessment (a) In general Section 6501 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: (n) Assessable payment of employer shared responsibility In the case of any assessable payment under section 4980H, the period for assessment shall expire at the end of the 6-year period beginning on the due date for filing the return under section 6056 (or, if later, the date such return was filed) for the calendar year with respect to which such payment is determined. . (b) Effective date The amendments made by this section shall apply with respect to returns which are due after December 31, 2024.