The U.S. Department of Labor (DOL) publicized last year its stepped up enforcement efforts inquiring about procedures used by larger defined benefit plans for locating, and then beginning payment of benefits to, terminated vested participants who have reached the age when the plan mandates benefits must begin. Those audit activities are continuing. For years, the
IRS to Process Tax Returns That Lack Certification of ACA-Required Coverage
By Musette T. Vincent on
Posted in Affordable Care Act, IRS
In the wake of the President’s January 20, 2017 Executive Order directing a reduction in regulatory burdens imposed by the Affordable Care Act (ACA), the IRS has quietly announced that it will continue to process income tax returns lacking confirmation that the taxpayer has maintained ACA-required health coverage.
The ACA requires that taxpayers who do…
Affordable Care Act Employer Penalties – Another Reason to Make Sure Workers are Properly Classified as Employees or Independent Contractors
Beginning next year, an applicable large employer that does not offer affordable minimum value group health coverage to its fulltime employees (and their children up to age 26) will be vulnerable to employer shared responsibility penalties under Internal Revenue Code §4980H. Whether an employer is an “applicable large employer” depends on its number of fulltime…
IRS Commences IRC Section 409A Audits
Posted in Deferred and Executive Compensation
The IRS has commenced a compliance initiative project (“CIP”) aimed at nonqualified deferred compensation arrangements subject to Section 409A of the Internal Revenue Code (“409A”). Although the project scope is limited, employers with arrangements that may be subject to 409A should take this regulatory action as a prompting to review their arrangements and make any…
IRS Voluntary Classification Settlement Program – Watch Your Step!
By Monique Warren & Jackson Lewis P.C. on
The Internal Revenue Service has announced its Voluntary Classification Settlement Program (“VCSP”) offering relief to certain employers from unpaid employment taxes, penalties and interest that may result from misclassification of workers. The IRS’s September 21, 2011, Announcement 2011-64 and “Frequently Asked Questions” (published on September 30) explains that the VCSP allows employers to correct misclassification…
IRS Section 409A Audits Get Underway
Posted on
Posted in Deferred and Executive Compensation
Last year, the IRS began auditing deferred compensation plans and arrangements under IRC Section 409A, which imposes restrictions on both the terms and the operation of such plans unless an exemption applies. This program began in 2009, the first year that plan documents had to comply with Section 409A in writing (beginning in 2006, plans had to comply…
IRS Delays Mandatory W2 Reporting on Cost of Health Coverage for Employees
By Employee Pension & Welfare Benefits Group on
Posted in Health Care Reform Legislation
Employers across the country have been preparing to meet the new W-2 reporting requirement under the Affordable Care Act, that generally requires employers to report on Form W-2 for tax years beginning with 2011 the cost of health coverage provided to the employee. In Notice 2010-69, the IRS has provided employers with another year…