The IRS is supposed to use the form to calculate a provider’s “health insurance provider fee” tax obligations under Section 9010 of the Patient Protection and Affordable Care Act of 2010 (PPACA).
The form for the 2015 “data year,” or year when the coverage was provided, will be due April 18, 2016.
A provider can submit the form electronically or mail it. In the new draft instructions, IRS officials have added a tip recommending that a provider that mails the form to the IRS also fax a copy of the form to a toll-free number.
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Officials have also:
Added a cautionary note about entity addresses. “Do not provide a P.O. Box,” officials warn.
Kept an instruction that advises a covered entity to, “Enter a street address where you can receive overnight deliveries.”
Added a note telling issuers that the IRS will provide separate guidance on treatment of direct premiums written for expatriate health plans.
PPACA drafters created the health insurance provider fee system because of a belief that PPACA would increase the providers’ enrollment and revenue. PPACA drafters saw the fee provision as a way to use part of insurers’ new PPACA-related revenue to pay for PPACA coverage expansion programs.
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