Bipartisan IRS Reporting Reform Provides Safety Net, Relief
Today, the Partnership for Employer-Sponsored Coverage (P4ESC) issued its endorsement of the Commonsense Reporting Act of 2021 (H.R. 5318), bipartisan legislation to bring clarity to the Affordable Care Act’s (ACA) tax credit eligibility and employer information reporting processes under the Internal Revenue Service (IRS). The legislation is sponsored by House Ways and Means Committee Members Congressmen Mike Thompson (D-CA) and Adrian Smith (R-NE). The coalition’s endorsement letter is linked HERE.
“The Partnership for Employer-Sponsored Coverage applauds Congressmen Thompson and Smith for their leadership in providing consumers with a safety-net and businesses of all sizes with relief under the current complicated and burdensome IRS employer reporting system,” said Christine Pollack, the coalition’s Executive Director.
The Commonsense Reporting Act of 2021 provides consumers with help during the annual health coverage open enrollment process, employers with relief from the burdensome reporting requirements, and Exchanges and the IRS with an additional tool to verify tax credit and subsidy eligibility. The legislation also protects Social Security numbers and modernizes the flow of information to consumers.
H.R. 5318 provides a pathway whereby data currently reported to the IRS during year-end tax filing season is instead reported prior to Exchange open enrollment season. “The prospective reporting option created under the Commonsense Reporting Act aids consumers, employers, and Exchanges and the IRS in better navigating the ACA eligibility and reporting processes. This technical tax-process change is long overdue for consumers, employers, and the federal government alike,” Pollack further noted.
The Partnership for Employer-Sponsored Coverage is an advocacy alliance committed to ensuring that employment-based coverage is strengthened and remains a viable, affordable option for decades to come. P4ESC membership includes:
Janet Trautwein, CEO, National Association of Health Underwriters
“Employers offering health insurance are suffering under burdensome reporting requirements. By modernizing the reporting requirements, the Commonsense Reporting Act will provide much needed relief to employers as well as increased protections for consumers. We applaud the leadership of Congressmen Thompson and Smith on this important reform.”
Blake Adami, Vice President, National Association of Wholesaler-Distributors
“NAW supports the bipartisan Commonsense Reporting Act which provides consumers with help during the annual health coverage open enrollment process and employers with relief from burdensome reporting requirements. This bill also protects the privacy of individuals’ Social Security numbers, authorizes the electronic transmission of reporting information, and establishes oversight of reporting verification.”
Edwin Egee, Vice President, Government Relations & Workforce Development, National Retail Federation
“NRF applauds the reintroduction of the Commonsense Reporting Act. This long-overdue, bipartisan legislation would address duplicative and useless reporting requirements under the Affordable Care Act. These changes, if enacted, would reduce a significant administrative burden facing American retailers. NRF thanks Congressmen Thompson and Smith for their leadership.”
Aaron Frazier, Director of Healthcare and Tax Policy, National Restaurant Association
“Restaurants strongly support the Commonsense Reporting Act to help more small businesses offer health insurance to their employees and ensure compliance with the Affordable Care Act. 9 in 10 restaurants are small businesses, with the vast majority still recovering from the economic devastation of COVID-19. Now is the time for Congress to advance bipartisan legislation that improves health insurance coverage, reduces bureaucratic reporting standards, and lowers costs for small businesses.”
Ken Crerar, President & CEO, The Council of Insurance Agents and Brokers
“On behalf of our member firms who place and advise on approximately 70% of employer-sponsored insurance premiums in the United States, we wholly support these efforts to streamline and modernize ACA reporting requirements. The opportunity to both provide required information prospectively to the IRS and avoid surprise financial penalties will enable employers to more effectively administer benefits, manage healthcare costs, and deliver comprehensive benefits solutions to their employees.”
M. Garrett Hohimer, Director, Policy & Advocacy, Business Group on Health
“The Business Group on Health strongly supports the reintroduction of the bipartisan Commonsense Reporting Act. After more than 5 years of Affordable Care Act reporting, employers have paid for and generated hundreds of millions ACA forms and shouldered thousands of hours of administrative burden. The Commonsense Reporting Act’s upfront, prospective reporting option for employers is a win-win; it would provide more useful and actionable information to the federal government and be less costly and burdensome for employer plan sponsors who choose to use it.”
Austen Jensen, Senior Vice President, Retail Industry Leaders Association
“As it stands today, the reporting requirements for employers to verify ACA compliance are incredibly burdensome and unnecessarily complex. Retailers support this bipartisan, commonsense legislation to help streamline this process for both employers and their employees, and we thank Congressmen Thompson and Smith for their leadership in addressing this issue.”
Kristen Swearingen, Vice President of Legislative & Political Affairs, Associated Builders and Contractors
“This bipartisan, commonsense bill would provide ABC member companies with much-needed relief from a complex and unnecessary IRS reporting requirement. Alleviating this burden for our members would allow them to dedicate more of their time and resources to doing what they do best – building our communities and supporting hardworking Americans.”
Stephen E. Sandherr, CEO, Associated General Contractors
“AGC members take pride in offering competitive health care benefits but the Affordable Care Act’s complex and unnecessary reporting requirements make it needlessly difficult. This measure offers commonsense changes to the act that streamline reporting requirements while offering increased protections for individuals.”
Kevin Kuhlman, Vice President of Government Affairs, National Federation of Independent Business
“Complying with the employer mandate is one of the most significant challenges small businesses face in implementing the Affordable Care Act. The Commonsense Reporting Act represents an important, bipartisan step in addressing this issue by reforming the employer reporting system and providing more time for businesses to respond to alleged violations. NFIB appreciates the leadership of Representatives Thompson and Smith in proposing this legislation.”