[Congressional Record Volume 169, Number 108 (Wednesday, June 21, 2023)]
[House]
[Pages H3048-H3050]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1900
                   EMPLOYER REPORTING IMPROVEMENT ACT

  Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3801) to amend the Internal Revenue Code of 1986 to 
streamline and improve the employer reporting process relating to 
health insurance coverage and to protect dependent privacy, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3801

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Employer Reporting 
     Improvement Act''.

     SEC. 2. TIN REPORTING FLEXIBILITY.

       (a) In General.--Section 6055(b)(1) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     flush sentence:

[[Page H3049]]

     ``For purposes of subparagraph (B)(i), in the case of any 
     individual whose name is required to be set forth in a return 
     under subsection (a), if the person required to make a return 
     under such subsection is unable to collect information on the 
     TINs of such individuals, the Secretary may allow the 
     individual's full name and date of birth to be substituted 
     for the name and TIN.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to returns the due date for which is after 
     December 31, 2024.

     SEC. 3. ELECTRONIC STATEMENTS.

       (a) In General.--Section 6056(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(3) Electronic delivery.--An individual shall be deemed 
     to have consented to receive the statement under this 
     subsection in electronic form if such individual has 
     affirmatively consented at any prior time, to the person who 
     is the employer of the individual during the calendar year to 
     which the statement relates, to receive such statement in 
     electronic form. The preceding sentence shall not apply if 
     the individual revokes such consent in writing.''.
       (b) Statements Relating to Health Insurance Coverage.--
     Section 6055(c) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(3) Electronic delivery.--An individual shall be deemed 
     to have consented to receive the statement under this 
     subsection in electronic form if such individual has 
     affirmatively consented at any prior time, to the person 
     required to make such statement, to receive such statement in 
     electronic form. The preceding sentence shall not apply if 
     the individual revokes such consent in writing.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to statements the due date for which is after 
     December 31, 2024.

     SEC. 4. TIME FOR RESPONSE.

       (a) In General.--Section 4980H(d) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Time for response.--The Secretary shall allow an 
     applicable large employer at least 90 days from the date of 
     the first letter which informs the employer of a proposed 
     assessment of the employer shared responsibility payment 
     under this section to respond to the proposed assessment 
     before taking any further action with respect to such 
     proposed assessment.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to assessments proposed in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 5. STATUTE OF LIMITATIONS ON PENALTY ASSESSMENT.

       (a) In General.--Section 6501 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Assessable Payment of Employer Shared 
     Responsibility.--In the case of any assessable payment under 
     section 4980H, the period for assessment shall expire at the 
     end of the 6-year period beginning on the due date for filing 
     the return under section 6056 (or, if later, the date such 
     return was filed) for the calendar year with respect to which 
     such payment is determined.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to returns which are due after 
     December 31, 2024.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Missouri (Mr. Smith) and the gentleman from California (Mr. Thompson) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Missouri.


                             General Leave

  Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days to revise and extend their remarks and 
submit extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may 
consume.
  I appreciate the opportunity to say a few words about the Employer 
Reporting Improvement Act before us today, introduced by my good 
friends, Ways and Means colleagues, Representatives Adrian Smith and   
Mike Thompson. This is a straightforward and effective bipartisan 
solution to provide small businesses with relief from cumbersome 
Affordable Care Act reporting requirements.
  Under current law, every year, to determine compliance with ACA 
requirements, employers have to report to the IRS information about the 
health insurance coverage they have provided for their employees.
  As part of that process, employers are required to submit their 
employee and their spouse or dependents' personal tax identification 
numbers or Social Security numbers. However, here is the catch: If, 
during this process, the employer unknowingly submits incorrect 
information, or if the IRS believes that an employee is wrongfully 
claiming a premium tax credit, the employer faces a significant 
financial penalty.
  Making matters worse, the window of opportunity that employer has to 
appeal is short, while the statute of limitations on that violation is 
limitless.
  On average, the IRS takes anywhere between 18 to 24 months, 2 years, 
to crunch the numbers on all this data they receive. That means the 
small business is left in limbo waiting to hear whether the government 
will find them in violation of the law.
  The bill before us today gives employers flexibility about what 
personal information they have to provide on behalf of their employees 
and their families. It extends the appeal window for any potential 
violation and establishes a statute of limitations so those small 
businesses, who have limited resources to begin with, can navigate 
these waters with less of a burden.
  I thank my colleagues on both sides of this aisle for supporting this 
measure to provide relief to our small business job creators.
  Mr. Speaker, I reserve the balance of my time.
  Mr. THOMPSON of California. Mr. Speaker, I yield myself such time as 
I may consume.
  I rise in strong support of this legislation. I thank my colleague 
from Nebraska and my friend, Mr. Smith, for working with me on this 
important bill.
  This legislation before us today simplifies the ACA reporting process 
for employers and businesses across our country. The bill allows 
employers to submit required information electronically and improves 
privacy protections by eliminating the unnecessary requirement that 
employers collect dependents' Social Security numbers.
  In addition, the bill ensures that employers have a reasonable 
opportunity to respond to the IRS before being assessed penalties, 
while simultaneously ensuring the IRS has the time and tools it needs 
to assess penalties to bad actors.
  I share my colleagues' disappointment that prospective reporting 
provisions of the bill were removed. I understand the challenges facing 
the Treasury Department, and I look forward to working with my 
colleagues toward a resolution on that front.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of Missouri. Mr. Speaker, I yield 3 minutes to the 
gentleman from Nebraska (Mr. Smith), one of the sponsors of this 
legislation.
  Mr. SMITH of Nebraska. Mr. Speaker, I rise today in support of our 
bill, the Employer Reporting Improvement Act. As was mentioned, the 
bill was adapted from legislation that my colleague, Mr. Thompson, and 
I have been working on for years, the Commonsense Reporting Act.
  The Employer Reporting Improvement Act is a strong step toward 
cleaning up the complicated process employers use to report data 
required by the IRS and providing employers relief.
  This data is used to determine if an employee's health coverage is 
considered affordable. Unfortunately, an inadvertent mistake or 
omission in reporting this data can result in a financial penalty for 
the employer long after the original submission. The potential 
financial penalty can put a serious strain on small businesses who are 
already struggling with workforce shortages and persistently high 
inflation.
  While the vast majority of these mistakes are ultimately corrected 
without a financial penalty being enforced, employers are still forced 
to navigate a complicated maze of bureaucracy to clear up these 
unintentional mistakes.
  The Employer Reporting Improvement Act makes simple, yet effective 
changes, including codifying actions previously taken to create more 
safeguards and flexibilities, improving the reporting process, and 
making it less likely employers are faced with resolving reporting 
problems several years after the fact.
  In fact, one of the most important pieces of the bill is the creation 
of a reasonable statute of limitations, 6 years, for penalties 
resulting from reporting errors.
  As we continue our work to improve employer reporting requirements, I 
hope we can work with the Treasury Department to find a path forward on 
prospective reporting, as Mr. Thompson also elaborated on.
  I am glad to support the Employer Reporting Improvement Act. I 
encourage my colleagues to do the same.

[[Page H3050]]

  

  Mr. THOMPSON of California. Mr. Speaker, I reserve the balance of my 
time.

  Mr. SMITH of Missouri. Mr. Speaker, I am prepared to close. I reserve 
the balance of my time.
  Mr. THOMPSON of California. Mr. Speaker, I yield myself the balance 
of my time.
  I reiterate my thanks to my partner on this bill, Mr. Smith from 
Nebraska. This is a bill that I have worked on for the last four 
Congresses. It will make life easier for businesses, and I urge my 
colleagues to support it.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SMITH of Missouri. Mr. Speaker, I yield myself the remainder of 
my time.
  America's small businesses have had it pretty tough these past few 
years. They are asking that Congress do its part to bring a measure of 
relief.
  The Employer Reporting Improvement Act is one step we can easily take 
to shrink the burden Washington imposes on them and their employees.
  The mom-and-pop shops that line America's Main Streets should not 
have to operate under fear that Washington is going to come after them 
for a clerical error. When they are faced with a potential penalty, 
they ought to have the time to make their case. It is a simple matter 
of fairness.
  This measure has strong bipartisan support. It sailed out of the Ways 
and Means Committee on a vote of 37-0.
  I urge my colleagues to support this legislation, and I yield back 
the balance of my time.
  The SPEAKER pro tempore (Mr. Nunn). The question is on the motion 
offered by the gentleman from Missouri (Mr. Smith) that the House 
suspend the rules and pass the bill, H.R. 3801, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________