IRS Announces Interim Relief From Reporting Health Insurance Costs On Form W-2 For Next Year

The healthcare reform bill requires employers, for taxable years beginning on or after January 1, 2011, to report on Form W-2 the cost of employer sponsored group health insurance coverage.

Today, the IRS provided interim relief from this requirement. In IRS Notice 2010-69, the IRS announced that reporting the cost of such coverage will not be mandatory for Forms W-2 issued for 2011.

From Notice 2010-69:

BACKGROUND
Section 6051(a)(14) was added to the Code by § 9002 of the Patient Protection and Affordable Care Act of 2010, Public Law 111-148, enacted March 23, 2010. Section 6051(a)(14) provides generally that the aggregate cost of applicable employer sponsored coverage (as defined in § 4980I(d)(1)) must be reported on Form W-2.

INTERIM RELIEF
Pursuant to this notice, the reporting requirement set forth in § 6051(a)(14) is not mandatory for Forms W-2 issued for 2011. Accordingly, an employer will not be treated as failing to meet the requirements of § 6051 for 2011, and will not be subject to any penalties for failure to meet such requirements, merely because it does not report the aggregate cost of employer-sponsored coverage (as defined in § 4980I(d)(1)) on Forms W-2 issued for 2011. The Treasury Department and the IRS anticipate issuing guidance on the reporting requirement set forth in § 6051(a)(14) before the end of this year.

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