Supreme Court Will Take Up ACA Challenge

The Supreme Court announced it would consider a challenge to the Affordable Care Act (ACA) colloquially known as Obamacare.  The legal challenge, brought by the Attorney General of Texas, seeks to overturn the landmark healthcare law. 

The challenge proposes that since the ACA only passes constitutional muster through its tax implications, the 2017’s Tax Cuts and Jobs Act which removed the tax penalties for ACA non-compliance, renders the law unconstitutional.  Lower courts have initially agreed with Texas in a split decision, and an appeal is now fast tracked to the Supreme Court.

Its important to understand that the Affordable Care Act, and its reporting obligations, remain in force.  It is highly unlikely that the appeal will affect filing obligations in reporting year 2020.  As such, employers should continue to comply with the Act. The future of ACA reporting obligations remains far from fully decided.

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Author

Jesse Rooney

Jesse Rooney is regulatory counsel for Sovos. His research focuses on tax information reporting. He is a member of the Massachusetts bar.
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