Electronic Filing of the Report of Health Insurance Provider Information
| Citation | 84 FR 61547 |
| Record Number | 2019-24671 |
| Published date | 13 November 2019 |
| Section | Rules and Regulations |
| Court | Internal Revenue Service,Treasury Department |
Federal Register, Volume 84 Issue 219 (Wednesday, November 13, 2019)
[Federal Register Volume 84, Number 219 (Wednesday, November 13, 2019)]
[Rules and Regulations]
[Pages 61547-61548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24671]
[[Page 61547]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 57
[TD 9881]
RIN 1545-BN57
Electronic Filing of the Report of Health Insurance Provider
Information
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
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SUMMARY: This document contains final regulations amending the Health
Insurance Providers Fee regulations to require certain covered entities
engaged in the business of providing health insurance for United States
health risks to electronically file Form 8963, ``Report of Health
Insurance Provider Information.'' These final regulations affect those
entities.
DATES: Effective Date. These regulations are effective on November 13,
2019.
FOR FURTHER INFORMATION CONTACT: David Bergman, (202) 317-6845 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains final regulations in Title 26 of the Code of
Federal Regulations under section 9010 of the Patient Protection and
Affordable Care Act (PPACA), Public Law 111-148, 124 Stat. 119 (2010),
as amended by section 10905 of PPACA, and as further amended by section
1406 of the Health Care and Education Reconciliation Act of 2010,
Public Law 111-152 (124 Stat. 1029 (2010)) (collectively, the
Affordable Care Act or ACA). The final regulations provide guidance on
the annual fee imposed on covered entities engaged in the business of
providing health insurance for United States health risks, and affect
persons engaged in the business of providing health insurance for
United States health risks.
On December 9, 2016, the Treasury Department and the IRS published
a notice of proposed rulemaking (REG-123829-16) in the Federal
Register, 81 FR 89020, containing proposed regulations that would amend
section 57.3(a)(2) of the Health Insurance Providers Fee regulations to
provide that a covered entity (including a controlled group) reporting
on a Form 8963 or corrected Form 8963 more than $25 million in net
premiums written must electronically file the forms after December 31,
2017. Forms 8963 reporting $25 million or less in net premiums written
are not required to be electronically filed. The proposed regulations
also provided that if a Form 8963 or corrected Form 8963 is required to
be filed electronically, any subsequent Form 8963 filed for the same
fee year must also be filed electronically, even if the subsequently
filed Form 8963 reports $25 million or less in net premiums written. In
addition, the proposed regulations provided that a failure to
electronically file would be treated as a failure to file for purposes
of section 57.3(b).
No comments were received in response to the notice of proposed
rulemaking. No public hearing was requested or held. This Treasury
Decision adopts the proposed regulations with no substantive change
other than the applicability date. The rationale provided in the
Explanation of Provisions section of the notice of proposed rulemaking
applies equally to these final regulations. The electronic filing
requirement will begin in the 2020 fee year because the fee will not be
collected in 2019.
Special Analyses
This regulation is not subject to review under section 6(b) of
Executive Order 12866 pursuant to the Memorandum of Agreement (April
11, 2018) between the Department of the Treasury and the Office of
Management and Budget regarding review of tax regulations. It is hereby
certified that the electronic filing requirement would not have a
significant economic impact on a substantial number of small entities
pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6). The
rule is expected to affect primarily larger entities because the
electronic filing requirement is only imposed if the filer must report
more than $25 million in net premiums. Small entities are unlikely to
report more than $25 million in net premiums, and the rule contains a
specific exemption from the electronic reporting requirement for
covered entities that report $25 million or less in net premiums
written. Accordingly, this rule will not have a significant economic
impact on a substantial number of small entities.
Pursuant to section 7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking preceding these final regulations was
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on the impact on small business, and no
comments were received.
Drafting Information
The principal author of these regulations is David Bergman of the
Office of the Associate Chief Counsel (Procedure and Administration).
List of Subjects in 26 CFR Part 57
Health insurance, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 57 is amended to read as follows:
PART 57--HEALTH INSURANCE PROVIDERS FEE
0
Paragraph 1. The authority citation for 26 CFR part 57 continues to
read in part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 57.3 is amended by revising paragraph (a)(2) to read as
follows:
Sec. 57.3 Reporting requirements and associated penalties.
(a) * * *
(2) Manner of reporting--(i) In general. The IRS may provide rules
in guidance published in the Internal Revenue Bulletin for the manner
of reporting by a covered entity under this section, including rules
for reporting by a designated entity on behalf of a controlled group
that is treated as a single covered entity.
(ii) Electronic Filing Required. Any Form 8963 (including corrected
forms) filed pursuant to paragraph (a)(1) of this section and reporting
more than $25 million in net premiums written must be filed
electronically in accordance with the instructions to the form. If a
Form 8963 or corrected Form 8963 is required to be filed electronically
under this paragraph (a)(2)(ii), any subsequently filed Form 8963 filed
for the same fee year must also be filed electronically. For purposes
of Sec. 57.3(b), any Form 8963 required to be filed electronically
under this section will not be considered filed unless it is filed
electronically.
* * * * *
0
Par. 3. Section 57.10 is amended by revising the section heading,
paragraph (a) and adding paragraph (c) to read as follows:
Sec. 57.10 Applicability date.
(a) Except as provided in paragraphs (b) and (c) of this section,
Sec. Sec. 57.1 through 57.9 apply to any fee that is due on or after
September 30, 2014.
* * * * *
[[Page 61548]]
(c) Section 57.3(a)(2)(ii) applies to Forms 8963, including
corrected Forms 8963, filed after December 31, 2019.
Sunita Lough,
Deputy Commissioner for Services and Enforcement.
Approved: October 29, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2019-24671 Filed 11-8-19; 4:15 pm]
BILLING CODE P
