Members of both the House and Senate are currently discussing the “Commonsense Reporting Act of 2017,” a bill that seeks to “streamline and modernize employer reporting requirements” under the Affordable Care Act.
To accomplish this goal, the legislation would have the following ramifications:
- Permits employers to voluntarily report general information to the IRS prospectively to help increase the accuracy of eligibility determinations for Exchange tax credits.
- Eases reporting burdens for employers who use the voluntary prospective reporting system by requiring 6056 reporting statements only for those employees for whom the employer has received notification that the employee or their dependents purchased coverage through an Exchange rather than issuing reporting statements for the entire workforce.
Currently, the identical bills are in both the Senate and House. Each bill also has bipartisan cosponsors.
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera