The IRS issued preliminary guidance regarding the excise tax on high cost employer-sponsored health coverage, commonly known as the “Cadillac Tax.” Notice 2015-16 describes potential approaches being considered in developing guidance under Section 4980l. Specifically the Notice addresses (1) the definition of applicable coverage, (2) the determination of the cost of applicable coverage, and (3) the application of the annual statutory dollar limit to the cost of applicable coverage.
The IRS will seek comments on potential approaches to a number of issues both with respect to this Notice and a subsequent notice that is expected to address other issues. Additionally, there will be an opportunity to comment after the proposed rule is issued.
Click the link below to download the bulletin.
As always please contact your Total benefit Solutions, Inc. account manager at (215)355-2121 if you have any further questions about this guidance or health reform ( the affordable care act).