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118-hr-3801118th CongressWALLET

Employer Reporting Improvement Act

Sponsored By: Representative Smith, Adrian [R-NE-3]

Became Law

Summary

Streamlines employer reporting of health coverage. This law updates how employers report health insurance, strengthens privacy for dependents when TINs are missing, expands electronic delivery of coverage statements, and changes timing rules for employer penalty assessments.

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  • Families and dependents: Employers may substitute an individual's full name and date of birth for a taxpayer identification number when the TIN cannot be collected for certain section 6055 reporting. This substitute identifier applies to returns due after December 31, 2024.
  • Workers and enrollees: Individuals are treated as having consented to electronic delivery of employer and issuer coverage statements if they previously gave affirmative consent for that calendar year. Consent can be revoked in writing, and the rule applies to statements with due dates after December 31, 2024.
  • Large employers and the IRS: Applicable large employers must be given at least 90 days to respond to a proposed section 4980H assessment. The period for assessing employer shared-responsibility penalties runs for 6 years from the 6056 return due date or filing date for returns due after December 31, 2024.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Name and birthdate can replace missing taxpayer ID

When a coverage filer cannot get a taxpayer ID, the IRS may allow a fallback. The filer can use the person’s full name and date of birth on the 6055 return. This helps ensure coverage gets reported and can protect dependent privacy. This applies to returns due after December 31, 2024.

More electronic health coverage statements by default

If you once agreed to get these statements electronically, that counts as consent for that year. You can revoke consent in writing at any time. This covers employer coverage statements and other health coverage statements. It applies to statements due after December 31, 2024.

Longer IRS window and 90-day reply for employers

The law changes IRS timelines for employer health coverage penalties. Employers get at least 90 days to respond after the first letter about a proposed penalty. The IRS can assess these penalties for up to six years. The six years start on the due date of the employer’s 6056 return, or the filing date if later. The 90-day rule applies to assessments proposed in tax years starting after enactment. The six-year rule applies to returns due after December 31, 2024.

Sponsors & CoSponsors

Sponsor

Smith, Adrian [R-NE-3]

NE • R

Cosponsors

  • Rep. Thompson, Mike [D-CA-4]

    CA • D

    Sponsored 6/5/2023

Roll Call Votes

No roll call votes available for this bill.

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