New FAQs Added on Section 6055 Annual Reporting Requirements Under Affordable Care Act

Author: Gloria Ju

The Affordable Care Act created two annual information-reporting requirements under Internal Revenue Code Section 6055 and Section 6056. Under Section 6055, an employer must report on minimum essential coverage to the Internal Revenue Service and to certain individuals.

The first reports are due in the first quarter of 2016. An employer should take steps now to ensure it meets the applicable Section 6055 deadlines. To help employers understand their Section 6055 reporting requirements, the following FAQs have been added to previously released Section 6055 FAQs in the Health Care Reform Resource Center:

• Why does the Internal Revenue Service (IRS) require reporting under Section 6055?
• If an employer is not subject to the employer mandate (i.e., an employer with fewer than 50 full-time and full-time equivalent employees), is it still required to report minimum essential coverage under Section 6055?
• Are all employers required to comply with the minimum essential coverage (MEC) reporting requirements under Section 6055?
• What steps should a reporting entity take if it does not have an employee's dependent's Social Security Number (SSN) for Section 6055 reporting purposes?
• What should a reporting entity do if, after making a reasonable effort, it is unable to obtain the Social Security Number (SSN) of an employee's dependent who is covered under a health policy or plan?
• Must a reporting entity make a written request to obtain the Social Security Number (SSN) of an employee's dependent?
• Does an employer have to report minimum essential coverage (MEC) under Section 6055 for all employees or only for full-time employees?
• Must an employer report under Section 6055 if some or all of its covered employees are exempt from the individual mandate?
• To whom must an employer provide the statement required to be provided to individuals under Section 6055?
• Does an employer have to provide individual Section 6055 statements to each dependent covered under a health plan?
• How must an employer provide the Section 6055 statement to the responsible individual?
• How should an employer go about obtaining an individual's consent to send Section 6055 statements electronically?
• May an employer hire a third party to handle Section 6055 reporting requirements?

FAQs on Section 6056 reporting requirements and FAQs applicable to both Sections 6055 and 6056 will be released shortly.