Daily Tax Update - October 29, 2013: HHS Issues Guidance Delaying Individual Mandate Penalty

HHS ISSUES GUIDANCE DELAYING INDIVIDUAL MANDATE PENALTY:  Today, the Department of Health and Human Services (HHS) issued guidance that delays until March 31, 2014 the individual mandate penalty under the Affordable Care Act.  According to the guidance, “Specifically, this final rule outlines financial integrity and oversight standards with respect to Affordable Insurance Exchanges, qualified health plan (QHP) issuers in Federally-Facilitated Exchanges (FFEs), and States with regard to the operation of risk adjustment and reinsurance programs.  It also establishes additional standards for special enrollment periods, survey vendors that may conduct enrollee satisfaction surveys on behalf of QHP issuers, and issuer participation in an FFE, and makes certain amendments to definitions and standards related to the market reform rules.  These standards, which include financial integrity provisions and protections against fraud and abuse, are consistent with Title I of the Affordable Care Act.  This final rule also amends and adopts as final interim provisions set forth in the Amendments to the HHS Notice of Benefit and Payment Parameters for 2014 interim final rule, published in the Federal Register on March 11, 2013, related to risk corridors and costsharing reduction reconciliation.”

IRS ISSUES FATCA GUIDANCE:  Today, the IRS issued Notice 2013-69, which provides guidance for foreign financial institutions (FFIs) entering into an FFI agreement with the IRS to be treated as a participating FFI or Reporting Model 2 FFI.  The notice includes a draft copy of the FFI agreement, which the IRS states will be finalized before December 31, 2013.  The notice also describes several upcoming intended updates to the regulations under chapters 4 and 61 and related forms.

TAX BILLS INTRODUCED OCTOBER 28:

1. [113rd] H.R.3348 : To amend the Internal Revenue Code of 1986 to make the individual health insurance mandate voluntary in 2014, and for other purposes.
Sponsor: Rep Barton, Joe [TX-6] (introduced 10/28/2013)      Cosponsors (12) 
Committees: House Ways and Means 
Latest Major Action: 10/28/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] S.1591 : A bill to amend the Internal Revenue Code of 1986 to allow the work opportunity credit to small businesses which hire individuals who are members of the Ready Reserve or National Guard, and for other purposes.
Sponsor: Sen Hagan, Kay [NC] (introduced 10/28/2013)      Cosponsors (None) 
Committees: Senate Finance 
Latest Major Action: 10/28/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.