Daily Tax Update - February 23, 2015: "Cadillac" Tax Guidance Issued

“Cadillac” Tax Guidance Issued:  Today, the IRS issued Notice 2015-16, describing potential approaches for regulations on the excise tax on high cost employer-sponsored health coverage under on Section 4980I, sometimes called the “Cadillac” tax.  It requests that comments be submitted by May 15, 2015.  Treasury and the IRS anticipate issuing another notice, before the publication of proposed regulations under Section 4980I, describing and inviting comments on potential approaches to a number of issues not addressed in Notice 2015-16, including procedural issues relating to the calculation and assessment of the excise tax.

Health Insurance Providers Fee Regulations Issued:  Today, the IRS and Treasury issued temporary and proposed regulations that provide rules for the definition of a covered entity for purposes of the fee imposed by Section 9010 of the Patient Protection and Affordable Care Act.  Section 9010 imposes an annual fee on covered entities that provide health insurance for United States health risks.