If the American Health Care Act (AHCA) becomes law, the IRS would expect employers to report as they did under the ACA. The IRS would also continue to enforce penalties for late, missing, inaccurate and incomplete information returns.
Even with the bill’s nullification of Employer Mandate penalties, reporting would remain mandatory in its current form until 2020 – at which point it would be likely be simplified and incorporated into Form W-2. While the state waiver provisions invite the opportunity for the federal government to relax reporting requirements, they also increase the potential for new reporting requirements at the state level.
There are also provisions of the AHCA that would result in new and expanded federal reporting requirements. The health insurance coverage credit creates a new section of the Internal Revenue Code, which would entail extensive information reporting from employers and other insurance providers for the administration of these tax credits.
In addition, under the advance payment program, employers will be required to report whether employees qualify for “other specified coverage” in connection with their employment.
