Daily Tax Update - February 5, 2016: Treasury and IRS Provide Temporary Transition Relief for Student Health Plans Under the ACA

Treasury and IRS Provide Temporary Transition Relief for Student Health Plans Under the ACA:  Notice 2016-17 provides guidance on the application of certain provisions of the Affordable Care Act (ACA) to premium reduction arrangements offered in connection with student health plans and provides temporary transition relief from enforcement by the Departments of the Treasury, Labor, and Health and Human Services in certain circumstances.  Under the notice, Treasury and the IRS will not assert that a premium reduction arrangement fails to satisfy certain group market reform provisions of the ACA if the arrangement is offered in connection with other student health coverage (insured or self-insured) for a plan year or policy year beginning before January 1, 2017.


Miscellaneous Guidance Released: Revenue Procedure 2016-14 provides the inflation adjustments for additional items that are adjusted for inflation due to the enactment of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), including certain expenses of elementary and secondary school teachers, qualified transportation fringe benefits, and the aggregate cost of certain depreciable assets that a taxpayer may elect to expense under Section 179. 


In accordance with Section 6039G, Treasury and the IRS released the list of individuals losing United States citizenship (within the meaning of section 877(a) or 877A) with respect to whom Treasury received information during the quarter ending December 31, 2015.