[House Report 118-111]
[From the U.S. Government Publishing Office]


118th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {      118-111

======================================================================



 
                   EMPLOYER REPORTING IMPROVEMENT ACT

                                _______
                                

 June 13, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Smith of Missouri, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 3801]

    The Committee on Ways and Means, to whom was referred 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, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page 
                                                                   
  I. SUMMARY AND BACKGROUND........................................... 3
          A. Purpose and Summary.................................      3
          B. Background and Need for Legislation.................      3
          C. Legislative History.................................      3
          D. Legislative History.................................      3
 II. EXPLANATION OF THE BILL.......................................... 4
          A. TIN Reporting Flexibility (sec. 2 of the bill and 
              sec. 6055 of the Code).............................      4
          B. Electronic Statements (sec. 3 of the bill and secs. 
              6055 and 6056 of the Code).........................      5
          C. Time For Response (sec. 4 of the bill and sec. 4980H 
              of the Code).......................................      8
          D. Statute of Limitations on Penalty Assessment (sec. 5  
              of the bill and 6501 of the Code)..................     10
III. VOTE OF THE COMMITTEE........................................... 10
 IV. BUDGET EFFECTS OF THE BILL...................................... 11
          A. Committee Estimate of Budgetary Effects.............     11
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     11
          C. Cost Estimate Prepared by the Congressional Budget  
              Office.............................................     11
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE...... 11
          A. Committee Oversight Findings and Recommendations....     11
          B. Statement of General Performance Goals and  
              Objectives.........................................     11
          C. Information Relating to Unfunded Mandates...........     11
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     11
          E. Tax Complexity Analysis.............................     12
          F. Duplication of Federal Programs.....................     12
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED........... 12
          A. Changes in Existing Law Proposed by the Bill, as  
              Reported...........................................     12

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

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:
        ``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.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 3801, the ``Employer Reporting Improvement 
Act,'' as ordered reported by the Committee on Ways and Means 
on June 7, 2023, to streamline health care reporting 
requirements.

                 B. Background and Need for Legislation

    The Patient Protection and Affordable Care Act (ACA) 
required that employers must annually report health insurance 
coverage data to the IRS during the year-end tax filing season. 
This information is used to determine if an employee's health 
coverage offer is affordable. In 2023, employer sponsored 
coverage is considered affordable if an individual's share of 
the monthly premium in the lowest cost plan offered by the 
employer is less than 9.12% of your household income. If it is 
not affordable, employees may purchase an exchange plan and be 
eligible for premium tax credit.
    During this reporting process, employers are required to 
submit tax identification (TIN) or Social Security numbers of 
the plan enrollee and a spouse or dependent who is enrolled in 
the health coverage. If an employer incorrectly submits this 
information, if they do not offer affordable coverage, or if 
the IRS believes that the employee is incorrectly claiming a 
premium tax credit, the employer may face financial penalties. 
Employers are restricted to a narrow penalty appeal window with 
no statute of limitations.
    The Committee believes legislation is needed to give 
employees flexibility to report names and dates of birth for 
employee's spouses and dependents if the TIN or Social Security 
Number is inaccessible. The Committee also believes it is 
necessary to provide employers with relief by extending the 
appeal window for a potential penalty to 90 days and 
establishing a 6-year statute of limitations on assessing 
penalties.

                         C. Legislative History


Background

    H.R. 3801 was introduced on June 5, 2023, and was referred 
to the Committee on Ways and Means.

Committee hearings

    On Thursday, March 23, 2023, the Ways and Means 
Subcommittee on Health held hearing on ``Why Health Care is 
Unaffordable: The Fallout of Democrats'' Inflation on Patients 
and Small Businesses''.

Committee action

    The Committee on Ways and Means marked up H.R. 3801, the 
``Employer Reporting Improvement Act,'' on June 7, 2023, and 
ordered the bill, as amended, favorably reported (with a quorum 
being present).

                         D. Legislative History

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearings were used to develop and consider H.R. 3801:
    (1) Committee on Ways and Means Subcommittee on Health 
``Why Health Care is Unaffordable: The Fallout of Democrats'' 
Inflation on Patients and Small Businesses''.

                      II. EXPLANATION OF THE BILL


 A. TIN Reporting Flexibility (sec. 2 of the Bill and sec. 6055 of the 
                                 Code)


                              PRESENT LAW

    Under the Patient Protection and Affordable Care Act 
(``PPACA''),\1\ persons (including health insurance issuers and 
employers that self-insure) that provide minimum essential 
coverage\2\ to any individual during a calendar year 
(``reporting entities'') must report certain health insurance 
coverage information to both the covered individual and to the 
Internal Revenue Service (``IRS'').\3\
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    \1\Pub. L. No. 111-148, March 23, 2010, as amended by the Health 
Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, 
March 30, 2010.
    \2\As defined in section 5000A.
    \3\Sec. 6055.
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    The information required to be reported includes: (1) the 
name, address, and taxpayer identification number (``TIN'') of 
the primary insured, and the name and TIN of each other 
individual obtaining coverage under the policy; (2) the dates 
during which the individual was covered under the policy during 
the calendar year; (3) whether the coverage is a qualified 
health plan offered through an Exchange;\4\ (4) the amount of 
any premium tax credit or cost-sharing reduction received by 
the individual with respect to such coverage; and (5) such 
other information as the Secretary of the Treasury 
(``Secretary'') may require.
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    \4\An Exchange established under section 1311 of the PPACA.
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    If health insurance coverage is provided through an 
employer-provided group health plan, the reporting entity is 
also required to report the name, address and employer 
identification number of the employer, the portion of the 
premium, if any, required to be paid by the employer, and any 
other information the Secretary may require to administer the 
tax credit for eligible small employers.\5\
---------------------------------------------------------------------------
    \5\Under section 45R.
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    The reporting entity is required to report the above 
information, along with the name, address and contact 
information of the reporting insurer, to the IRS on or before 
February 28 (March 31 if filing electronically) of the year 
following the calendar year to which the information 
relates.\6\ The reporting entity is required to report the 
above information, along with the name, address and contact 
information of the reporting entity, to the covered individual 
on or before January 31 of the year following the calendar year 
for which the information is required to be reported to the 
IRS.\7\ The IRS has generally designated Form 1094-B, 
Transmittal of Health Coverage Information Returns, and Form 
1095-B, Health Coverage, for reporting entities to meet these 
requirements. However, an applicable large employer that offers 
coverage through a self-insured health plan generally reports 
this information using Part III of the Form 1095-C, Employer-
Provided Health Insurance Offer and Coverage, which is the form 
that is also used by applicable large employers for the 
separate requirement (described in part B of this document) of 
reporting offers of health insurance coverage for their 
employees.\8\
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    \6\Treas. Reg. sec. 1.6055-1(f)(1).
    \7\Treas. Reg. sec. 1.6055-1(g)(4)(i).
    \8\Treas. Reg. sec. 1.6055-1(f)(2).
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    A reporting entity that fails to comply with these 
reporting requirements is subject to the penalties for failure 
to file an information return and failure to furnish payee 
statements, respectively.\9\
---------------------------------------------------------------------------
    \9\Sec. 6724(d)(1)(B)(xxiv), (d)(2)(GG); Treas. Reg. sec. 1.6055-
1(h).
---------------------------------------------------------------------------
    Under Treasury regulations,\10\ the IRS permits reporting 
entities to submit names and birthdates (instead of TINs) for 
both the primary insured and each other individual insured 
under the same policy if the reporting entity is unable to 
collect such individuals' TINs through ``reasonable 
efforts.''\11\ Reasonable efforts generally include three 
solicitations (one initial and two annual solicitations during 
the two years following enrollment) to collect the individual's 
TIN.\12\
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    \10\Treas. Reg. sec. 1.6055-1(e)(ii), (iii).
    \11\See T.D. 9660, 79 Fed. Reg. 13220, March 10, 2014.
    \12\Ibid.
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                           REASONS FOR CHANGE

    The Committee believes that the Treasury regulations 
permitting reporting entities to submit names and dates of 
birth when reporting information about minimum essential 
coverage, if the reporting entity is unable to collect covered 
individuals' TINs, has reduced burdens and provided certainty 
for reporting entities.

                        EXPLANATION OF PROVISION

    Under the provision, the Secretary may allow for any 
covered individual's full name and date of birth to be 
substituted for the individual's name and TIN if the reporting 
entity is unable to collect information on the TIN of such 
individual. The provision thus generally codifies the current 
Treasury regulations permitting this practice.

                             EFFECTIVE DATE

    The provision is effective for returns for which the due 
date is after December 31, 2024.

B. Electronic Statements (sec. 3 of the Bill and secs. 6055 and 6056 of 
                               the Code)


                              PRESENT LAW

    For a description of the reporting requirements generally 
applicable to persons that provide minimum essential coverage, 
see part A of this document.

Employer shared responsibility for health coverage

            In general
    An applicable large employer may be subject to a tax, 
referred to as the employer-shared responsibility payment 
(``ESRP'') for a month if one or more of its full-time 
employees is certified to the employer as receiving for the 
month a premium tax credit (``PTC'') for health insurance 
purchased on an Exchange or reduced cost-sharing for the 
employee's share of expenses covered by such health 
insurance.\13\ Whether an applicable large employer owes an 
ESRP and the amount of any penalty depend on whether the 
employer offers its full-time employees and their dependents 
the opportunity to enroll in minimum essential coverage under a 
group health plan sponsored by the employer and, if the 
employer offers such a group health plan, whether the coverage 
offered is affordable and provides minimum value.
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    \13\Sec. 4980H. PTCs for health insurance purchased on an Exchange 
are provided under section 36B. Reduced cost-sharing for an 
individual's share of expenses covered by such health insurance is 
provided under section 1402 of PPACA.
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            Definition of applicable large employer
    ``Applicable large employer'' generally means, with respect 
to a calendar year, an employer that employed an average of at 
least 50 full-time employees on business days during the 
preceding calendar year.\14\ In addition, in determining 
whether an employer is an applicable large employer, members of 
the same controlled group, group under common control, and 
affiliated service group are treated as a single employer.\15\
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    \14\Sec. 4980H(c)(2). Additional rules apply, for example, in the 
case of an employer that was not in existence for the entire preceding 
calendar year. Ibid.
    \15\The rules for determining controlled group, group under common 
control, and affiliated service group under section 414(b), (c), (m) 
and (o) apply.
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            Employer shared responsibility payments
    If an applicable large employer does not offer its full-
time employees and their dependents minimum essential coverage 
under an employer-sponsored plan and at least one full-time 
employee is certified as benefiting from PTCs or reduced cost-
sharing, the employer may be subject to an ESRP of $2,880 (for 
2023)\16\ (divided by 12 and applied on a monthly basis) 
multiplied by the number of its full-time employees minus 30, 
regardless of the number of full-time employees so certified.
---------------------------------------------------------------------------
    \16\Sec. 4980H(a), (c). Pursuant to Notice 2015-87, the IRS 
publishes annual updates to these values at https://www.irs.gov/
affordable-care-act/employers/questions-and-answers-on-employer-shared-
responsibility-provisions-under-the-affordable-care-act.
---------------------------------------------------------------------------
    Generally, an employee who is offered minimum essential 
coverage under an employer-sponsored plan is not eligible for a 
PTC or reduced cost-sharing unless the coverage is unaffordable 
or fails to provide minimum value.\17\ However, if an employer 
offers its full-time employees and their dependents minimum 
essential coverage under an employer-sponsored plan but at 
least one full-time employee is certified as being allowed PTC 
or reduced cost-sharing (because the coverage is unaffordable 
or fails to provide minimum value), the employer may be subject 
to an ESRP of $4,320 (for 2023) (divided by 12 and applied on a 
monthly basis) multiplied by the number of such full-time 
employees. The ESRP in this case is capped at the amount that 
would apply if the employer failed to offer its full-time 
employees and their dependents minimum essential coverage.\18\
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    \17\Under section 36B(c)(2)(C), coverage under an employer-
sponsored plan is unaffordable if the employee's share of the premium 
for self-only coverage exceeds 9.12 percent (for 2023) of household 
income (this percentage is updated as needed to reflect cost-of-living 
changes, see Rev. Proc. 2022-34, 2022-33 I.R.B. 143), and the coverage 
fails to provide minimum value if the plan's share of total allowed 
cost of provided benefits is less than 60 percent of such costs.
    \18\Sec. 4980H(b).
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Employer reporting of offers of health insurance coverage

    Each applicable large employer subject to the ESRP must 
report certain health insurance coverage information to both 
its full-time employees and to the IRS.\19\
---------------------------------------------------------------------------
    \19\Sec. 6056.
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    The information required to be reported includes: (1) the 
name, address and employer identification number of the 
employer; (2) a certification as to whether the employer offers 
its full-time employees and their dependents the opportunity to 
enroll in minimum essential coverage under an eligible 
employer-sponsored plan; (3) the number of full-time employees 
of the employer for each month during the calendar year; (4) 
the name, address and TIN of each full-time employee employed 
by the employer during the calendar year and the number of 
months, if any, during which the employee (and any dependents) 
was covered under a plan sponsored by the employer during the 
calendar year; and (5) such other information as the Secretary 
may require.
    Applicable large employers that offer employees and 
dependents the opportunity to enroll in minimum essential 
coverage also must report: (1) the length of any waiting period 
with respect to such coverage; (2) the months during the 
calendar year during which the coverage was available; (3) the 
monthly premium for the lowest cost option in each of the 
enrollment categories under the plan; and (4) the employer's 
share of the total allowed costs of benefits under the plan.
    The employer is required to file the return and transmittal 
to the IRS on or before February 28 (March 31 if filing 
electronically) of the year succeeding the calendar year to 
which it relates.\20\ The employer is required to report to 
each full-time employee the above information required to be 
reported with respect to that employee, along with the name, 
address and contact information of the reporting employer, on 
or before January 31 of the year following the calendar year 
for which the information is required to be reported to the 
IRS.\21\ The IRS generally has designated Form 1094-C, 
Transmittal of Employer-Provided Health Insurance Offer and 
Coverage Information Returns, and Form 1095-C, Employer-
Provided Health Insurance Offer and Coverage, for employers to 
meet these requirements.
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    \20\Treas. Reg. sec. 301.6056-1(e).
    \21\Employers have an automatic extension of 30 days after January 
31 to furnish this information to individuals. Treas. Reg. sec. 
301.6056 1(g)(1).
---------------------------------------------------------------------------
    An employer that fails to comply with these reporting 
requirements is subject to the penalties for failure to file an 
information return and failure to furnish payee statements, 
respectively.\22\
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    \22\Sec. 6724(d)(1)(B)(xxv), (d)(2)(HH); Treas. Reg. sec. 301.6056-
1(i).
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Electronic furnishing of statements

    Provided certain conditions are met, the IRS allows both 
applicable large employers fulfilling reporting requirements 
related to offers of health insurance coverage and reporting 
entities fulfilling reporting requirements related to minimum 
essential coverage to furnish the required statements to 
individuals electronically.\23\ Recipients must consent to 
receiving electronic statements and must be permitted to 
withdraw consent. \24\
---------------------------------------------------------------------------
    \23\Treas. Regs. secs. 1.6055-2; 301.6056-2. The applicable 
conditions generally relate to consent and withdrawal of consent, 
notice requirements, and access periods.
    \24\Ibid.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Committee believes the Treasury regulations permitting 
applicable large employers and reporting entities to furnish 
required statements electronically has reduced administrative 
burdens and expenses related to these reporting 
responsibilities. The Committee intends that applicable large 
employers and reporting entities have confidence that they may 
continue to furnish these statements electronically.

                        EXPLANATION OF PROVISION

    Under the provision, applicable large employers\25\ and 
reporting entities\26\ are permitted to furnish statements to 
an individual electronically if the individual has previously 
consented at any prior time, to the employer of the individual 
during the relevant calendar year or relevant reporting entity, 
to receive such statement in electronic form, so long as the 
individual has not revoked consent in writing. The provision 
thus generally codifies the existing regulations permitting 
electronic furnishing of Forms 1095-B and 1095-C.
---------------------------------------------------------------------------
    \25\With regard to section 6056.
    \26\With regard to section 6055.
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                             EFFECTIVE DATE

    The provision is effective for statements for which the due 
date is after December 31, 2024.

  C. Time for Response (sec. 4 of the Bill and sec. 4980H of the Code)


                              PRESENT LAW

    For a description of the employer-shared responsibility 
payment (``ESRP''), see part B of this document.
    Generally, when the IRS has made an initial finding that an 
applicable large employer may be liable for an assessment of 
the ESRP, the IRS sends the employer a letter (currently, 
Letter 226-J), which typically provides that the employer has 
30 days to respond regarding the proposed assessment.

                           REASONS FOR CHANGE

    The Committee believes that 30 days may not be enough time 
for applicable large employers to respond to a Letter 226-J. 
The Committee intends that the IRS be required to provide 
employers more time to respond to these letters before taking 
any further steps in the assessment process.

                        EXPLANATION OF PROVISION

    Under the provision, the Secretary is required to allow 
applicable large employers at least 90 days from date of the 
first letter which informs the employer of a proposed 
assessment of the ESRP (currently, Letter 226-J) to respond to 
the proposed assessment before taking any further action with 
respect to such proposed assessment.

                             EFFECTIVE DATE

    The provision is effective for assessments proposed in 
taxable years beginning after the date of the enactment.

D. Statute of Limitations on Penalty Assessment (sec. 5 of the Bill and 
                           6501 of the Code)


                              PRESENT LAW

    For a description of the employer-shared responsibility 
payment (``ESRP''), see part B of this document.
    Generally, the IRS may assess a tax or additional amount 
with respect to a tax within three years of the filing of a tax 
return.\27\ Numerous exceptions to this limitations period are 
provided, including expanded periods based on substantial 
omissions or failure to file a required tax return. In 2019, 
the IRS Office of Chief Counsel opined in advice to a field 
office that there is no statute of limitations regarding 
whether an applicable larger employer may be liable for the 
ESRP payment because there is no tax return filed to report an 
employer's liability for the ESRP.\28\
---------------------------------------------------------------------------
    \27\Sec. 6501.
    \28\Office of the Chief Counsel Memorandum, Statute of Limitations 
for IRC Sec.  4980H, 20200801F, December 26, 2019, available at https:/
/www.irs.gov/pub/irs-lafa/20200801f.pdf.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    Because the IRS is of the view that there is no statute of 
limitations applicable to the ESRP, applicable large employers 
may be assessed an ESRP for any previous year during which the 
employer was potentially liable, potentially leading to 
assessments long after the year in question.
    The Committee believes that, in the interests of fairness 
and finality, assessments of the ESRP should be subject to a 
statute of limitations, similar to other excise taxes, and 
subject to appropriate exceptions. The Committee also 
understands that the ESRP is a complex excise tax to 
administer, however, and that therefore the applicable 
limitations should be set at six years.

                        EXPLANATION OF PROVISION

    Under the provision, a six-year limitations period is added 
for assessments of the ESRP under section 4980H. The statute of 
limitations begins on the due date of the applicable large 
employer's return under section 6056 (relating to the 
requirement that applicable large employers subject to the ESRP 
report certain information related to offers of health 
insurance coverage), or the date the return is filed, if later.

                             EFFECTIVE DATE

    The provision is effective with respect to returns which 
are due after December 31, 2024.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 3801, as 
reported.
    The estimated effect of the bill on Federal fiscal year 
budget receipts is a loss of less than $500,000 for the period 
2023-2033.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased tax expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill does not authorize funding, so no statement of general 
performance goals and objectives is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                       E. Tax Complexity Analysis

    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Internal Revenue 
Code of 1986 and that have ``widespread applicability'' to 
individuals or small businesses, within the meaning of the 
rule.

                   F. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED


      A. Changes in Existing Law Proposed by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                     INTERNAL REVENUE CODE OF 1986




           *       *       *       *       *       *       *
Subtitle D--Miscellaneous Excise Taxes

           *       *       *       *       *       *       *


CHAPTER 43--QUALIFIED PENSION, ETC., PLANS

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SEC. 4980H. SHARED RESPONSIBILITY FOR EMPLOYERS REGARDING HEALTH 
                    COVERAGE.

  (a) Large employers not offering health coverage.--If--
          (1) any applicable large employer fails to offer to 
        its full-time employees (and their dependents) the 
        opportunity to enroll in minimum essential coverage 
        under an eligible employer-sponsored plan (as defined 
        in section 5000A(f)(2)) for any month, and
          (2) at least one full-time employee of the applicable 
        large employer has been certified to the employer under 
        section 1411 of the Patient Protection and Affordable 
        Care Act as having enrolled for such month in a 
        qualified health plan with respect to which an 
        applicable premium tax credit or cost-sharing reduction 
        is allowed or paid with respect to the employee,
then there is hereby imposed on the employer an assessable 
payment equal to the product of the applicable payment amount 
and the number of individuals employed by the employer as full-
time employees during such month.
  (b) Large employers offering coverage with employees who 
qualify for premium tax credits or cost-sharing reductions.--
          (1) In general.--If--
                  (A) an applicable large employer offers to 
                its full-time employees (and their dependents) 
                the opportunity to enroll in minimum essential 
                coverage under an eligible employer-sponsored 
                plan (as defined in section 5000A(f)(2)) for 
                any month, and
                  (B) 1 or more full-time employees of the 
                applicable large employer has been certified to 
                the employer under section 1411 of the Patient 
                Protection and Affordable Care Act as having 
                enrolled for such month in a qualified health 
                plan with respect to which an applicable 
                premium tax credit or cost-sharing reduction is 
                allowed or paid with respect to the employee,
        then there is hereby imposed on the employer an 
        assessable payment equal to the product of the number 
        of full-time employees of the applicable large employer 
        described in subparagraph (B) for such month and an 
        amount equal to 1/12 of $3,000.
          (2) Overall limitation.--The aggregate amount of tax 
        determined under paragraph (1) with respect to all 
        employees of an applicable large employer for any month 
        shall not exceed the product of the applicable payment 
        amount and the number of individuals employed by the 
        employer as full-time employees during such month.
  (c) Definitions and special rules.--For purposes of this 
section--
          (1) Applicable payment amount.--The term ``applicable 
        payment amount'' means, with respect to any month, 
        1/12 of $2,000.
          (2) Applicable large employer.--
                  (A) In general.--The term ``applicable large 
                employer'' means, with respect to a calendar 
                year, an employer who employed an average of at 
                least 50 full-time employees on business days 
                during the preceding calendar year.
                  (B) Exemption for certain employers.--
                          (i) In general.--An employer shall 
                        not be considered to employ more than 
                        50 full-time employees if--
                                  (I) the employer's workforce 
                                exceeds 50 full-time employees 
                                for 120 days or fewer during 
                                the calendar year, and
                                  (II) the employees in excess 
                                of 50 employed during such 120-
                                day period were seasonal 
                                workers.
                          (ii) Definition of seasonal 
                        workers.--The term ``seasonal worker'' 
                        means a worker who performs labor or 
                        services on a seasonal basis as defined 
                        by the Secretary of Labor, including 
                        workers covered by section 500.20(s)(1) 
                        of title 29, Code of Federal 
                        Regulations and retail workers employed 
                        exclusively during holiday seasons.
                  (C) Rules for determining employer size.--For 
                purposes of this paragraph--
                          (i) Application of aggregation rule 
                        for employers.--All persons treated as 
                        a single employer under subsection (b), 
                        (c), (m), or (o) of section 414 of the 
                        Internal Revenue Code of 1986 shall be 
                        treated as 1 employer.
                          (ii) Employers not in existence in 
                        preceding year.--In the case of an 
                        employer which was not in existence 
                        throughout the preceding calendar year, 
                        the determination of whether such 
                        employer is an applicable large 
                        employer shall be based on the average 
                        number of employees that it is 
                        reasonably expected such employer will 
                        employ on business days in the current 
                        calendar year.
                          (iii) Predecessors.--Any reference in 
                        this subsection to an employer shall 
                        include a reference to any predecessor 
                        of such employer.
                  (D) Application of employer size to 
                assessable penalties.--
                          (i) In general.--The number of 
                        individuals employed by an applicable 
                        large employer as full-time employees 
                        during any month shall be reduced by 30 
                        solely for purposes of calculating--
                                  (I) the assessable payment 
                                under subsection (a), or
                                  (II) the overall limitation 
                                under subsection (b)(2).
                          (ii) Aggregation.--In the case of 
                        persons treated as 1 employer under 
                        subparagraph (C)(i), only 1 reduction 
                        under subclause (I) or (II) shall be 
                        allowed with respect to such persons 
                        and such reduction shall be allocated 
                        among such persons ratably on the basis 
                        of the number of full-time employees 
                        employed by each such person.
                  (E) Full-time equivalents treated as full-
                time employees.--Solely for purposes of 
                determining whether an employer is an 
                applicable large employer under this paragraph, 
                an employer shall, in addition to the number of 
                full-time employees for any month otherwise 
                determined, include for such month a number of 
                full-time employees determined by dividing the 
                aggregate number of hours of service of 
                employees who are not full-time employees for 
                the month by 120.
                  (F) Exemption for health coverage under 
                TRICARE or the Department of Veterans 
                Affairs.--Solely for purposes of determining 
                whether an employer is an applicable large 
                employer under this paragraph for any month, an 
                individual shall not be taken into account as 
                an employee for such month if such individual 
                has medical coverage for such month under--
                          (i) chapter 55 of title 10, United 
                        States Code, including coverage under 
                        the TRICARE program, or
                          (ii) under a health care program 
                        under chapter 17 or 18 of title 38, 
                        United States Code, as determined by 
                        the Secretary of Veterans Affairs, in 
                        coordination with the Secretary of 
                        Health and Human Services and the 
                        Secretary.
          (3) Applicable premium tax credit and cost-sharing 
        reduction.--The term ``applicable premium tax credit 
        and cost-sharing reduction'' means--
                  (A) any premium tax credit allowed under 
                section 36B,
                  (B) any cost-sharing reduction under section 
                1402 of the Patient Protection and Affordable 
                Care Act, and
                  (C) any advance payment of such credit or 
                reduction under section 1412 of such Act.
          (4) Full-time employee.--
                  (A) In general.--The term ``full-time 
                employee'' means, with respect to any month, an 
                employee who is employed on average at least 30 
                hours of service per week.
                  (B) Hours of service.--The Secretary, in 
                consultation with the Secretary of Labor, shall 
                prescribe such regulations, rules, and guidance 
                as may be necessary to determine the hours of 
                service of an employee, including rules for the 
                application of this paragraph to employees who 
                are not compensated on an hourly basis.
          (5) Inflation adjustment.--
                  (A) In general.--In the case of any calendar 
                year after 2014, each of the dollar amounts in 
                subsection (b) and paragraph (1) shall be 
                increased by an amount equal to the product 
                of--
                          (i) such dollar amount, and
                          (ii) the premium adjustment 
                        percentage (as defined in section 
                        1302(c)(4) of the Patient Protection 
                        and Affordable Care Act) for the 
                        calendar year.
                  (B) Rounding.--If the amount of any increase 
                under subparagraph (A) is not a multiple of 
                $10, such increase shall be rounded to the next 
                lowest multiple of $10.
          (6) Other definitions.--Any term used in this section 
        which is also used in the Patient Protection and 
        Affordable Care Act shall have the same meaning as when 
        used in such Act.
          (7) Tax nondeductible.--For denial of deduction for 
        the tax imposed by this section, see section 275(a)(6).
  (d) Administration and procedure.--
          (1) In general.--Any assessable payment provided by 
        this section shall be paid upon notice and demand by 
        the Secretary, and shall be assessed and collected in 
        the same manner as an assessable penalty under 
        subchapter B of chapter 68.
          (2) Time for payment.--The Secretary may provide for 
        the payment of any assessable payment provided by this 
        section on an annual, monthly, or other periodic basis 
        as the Secretary may prescribe.
          (3) Coordination with credits, etc..--The Secretary 
        shall prescribe rules, regulations, or guidance for the 
        repayment of any assessable payment (including 
        interest) if such payment is based on the allowance or 
        payment of an applicable premium tax credit or cost-
        sharing reduction with respect to an employee, such 
        allowance or payment is subsequently disallowed, and 
        the assessable payment would not have been required to 
        be made but for such allowance or payment.
          (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.

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Subtitle F--Procedure and Administration

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                  CHAPTER 61--INFORMATION AND RETURNS

Subchapter A--RETURNS AND RECORDS

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PART III--INFORMATION RETURNS

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       Subpart D--INFORMATION REGARDING HEALTH INSURANCE COVERAGE


SEC. 6055. REPORTING OF HEALTH INSURANCE COVERAGE.

  (a) In general.--Every person who provides minimum essential 
coverage to an individual during a calendar year shall, at such 
time as the Secretary may prescribe, make a return described in 
subsection (b).
  (b) Form and manner of return.--
          (1) In general.--A return is described in this 
        subsection if such return--
                  (A) is in such form as the Secretary may 
                prescribe, and
                  (B) contains--
                          (i) the name, address and TIN of the 
                        primary insured and the name and TIN of 
                        each other individual obtaining 
                        coverage under the policy,
                          (ii) the dates during which such 
                        individual was covered under minimum 
                        essential coverage during the calendar 
                        year,
                          (iii) in the case of minimum 
                        essential coverage which consists of 
                        health insurance coverage, information 
                        concerning--
                                  (I) whether or not the 
                                coverage is a qualified health 
                                plan offered through an 
                                Exchange established under 
                                section 1311 of the Patient 
                                Protection and Affordable Care 
                                Act, and
                                  (II) in the case of a 
                                qualified health plan, the 
                                amount (if any) of any advance 
                                payment under section 1412 of 
                                the Patient Protection and 
                                Affordable Care Act of any 
                                cost-sharing reduction under 
                                section 1402 of such Act or of 
                                any premium tax credit under 
                                section 36B with respect to 
                                such coverage, and
                          (iv) such other information as the 
                        Secretary may require.
        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.
          (2) Information relating to employer-provided 
        coverage.--If minimum essential coverage provided to an 
        individual under subsection (a) consists of health 
        insurance coverage of a health insurance issuer 
        provided through a group health plan of an employer, a 
        return described in this subsection shall include--
                  (A) the name, address, and employer 
                identification number of the employer 
                maintaining the plan,
                  (B) the portion of the premium (if any) 
                required to be paid by the employer, and
                  (C) if the health insurance coverage is a 
                qualified health plan in the small group market 
                offered through an Exchange, such other 
                information as the Secretary may require for 
                administration of the credit under section 45R 
                (relating to credit for employee health 
                insurance expenses of small employers).
  (c) Statements to be furnished to individuals with respect to 
whom information is reported.--
          (1) In general.--Every person required to make a 
        return under subsection (a) shall furnish to each 
        individual whose name is required to be set forth in 
        such return a written statement showing--
                  (A) the name and address of the person 
                required to make such return and the phone 
                number of the information contact for such 
                person, and
                  (B) the information required to be shown on 
                the return with respect to such individual.
          (2) Time for furnishing statements.--The written 
        statement required under paragraph (1) shall be 
        furnished on or before January 31 of the year following 
        the calendar year for which the return under subsection 
        (a) was required to be made.
          (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.
  (d) Coverage provided by governmental units.--In the case of 
coverage provided by any governmental unit or any agency or 
instrumentality thereof, the officer or employee who enters 
into the agreement to provide such coverage (or the person 
appropriately designated for purposes of this section) shall 
make the returns and statements required by this section.
  (e) Minimum essential coverage.--For purposes of this 
section, the term ``minimum essential coverage'' has the 
meaning given such term by section 5000A(f).

SEC. 6056. CERTAIN EMPLOYERS REQUIRED TO REPORT ON HEALTH INSURANCE 
                    COVERAGE.

  (a) In general.--Every applicable large employer required to 
meet the requirements of section 4980H with respect to its 
full-time employees during a calendar year shall, at such time 
as the Secretary may prescribe, make a return described in 
subsection (b).
  (b) Form and manner of return.--A return is described in this 
subsection if such return--
          (1) is in such form as the Secretary may prescribe, 
        and
          (2) contains--
                  (A) the name, date, and employer 
                identification number of the employer,
                  (B) a certification as to whether the 
                employer offers to its full-time employees (and 
                their dependents) the opportunity to enroll in 
                minimum essential coverage under an eligible 
                employer-sponsored plan (as defined in section 
                5000A(f)(2)),
                  (C) if the employer certifies that the 
                employer did offer to its full-time employees 
                (and their dependents) the opportunity to so 
                enroll--
                          (i) the length of any waiting period 
                        (as defined in section 2701(b)(4) of 
                        the Public Health Service Act) with 
                        respect to such coverage,
                          (ii) the months during the calendar 
                        year for which coverage under the plan 
                        was available,
                          (iii) the monthly premium for the 
                        lowest cost option in each of the 
                        enrollment categories under the plan, 
                        and
                          (iv) the employer share of the total 
                        allowed costs of benefits provided 
                        under the plan,
                  (D) the number of full-time employees for 
                each month during the calendar year,
                  (E) the name, address, and TIN of each full-
                time employee during the calendar year and the 
                months (if any) during which such employee (and 
                any dependents) were covered under any such 
                health benefits plans, and
                  (F) such other information as the Secretary 
                may require.
The Secretary shall have the authority to review the accuracy 
of the information provided under this subsection, including 
the applicable large employer's share under paragraph 
(2)(C)(iv).
  (c) Statements to be furnished to individuals with respect to 
whom information is reported.--
          (1) In general.--Every person required to make a 
        return under subsection (a) shall furnish to each full-
        time employee whose name is required to be set forth in 
        such return under subsection (b)(2)(E) a written 
        statement showing--
                  (A) the name and address of the person 
                required to make such return and the phone 
                number of the information contact for such 
                person, and
                  (B) the information required to be shown on 
                the return with respect to such individual.
          (2) Time for furnishing statements.--The written 
        statement required under paragraph (1) shall be 
        furnished on or before January 31 of the year following 
        the calendar year for which the return under subsection 
        (a) was required to be made.
          (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.
  (d) Coordination with other requirements.--To the maximum 
extent feasible, the Secretary may provide that--
          (1) any return or statement required to be provided 
        under this section may be provided as part of any 
        return or statement required under section 6051 or 
        6055, and
          (2) in the case of an applicable large employer 
        offering health insurance coverage of a health 
        insurance issuer, the employer may enter into an 
        agreement with the issuer to include information 
        required under this section with the return and 
        statement required to be provided by the issuer under 
        section 6055.
  (e) Coverage provided by governmental units.--In the case of 
any applicable large employer which is a governmental unit or 
any agency or instrumentality thereof, the person appropriately 
designated for purposes of this section shall make the returns 
and statements required by this section.
  (f) Definitions.--For purposes of this section, any term used 
in this section which is also used in section 4980H shall have 
the meaning given such term by section 4980H.

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CHAPTER 66--LIMITATIONS

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         Subchapter A--LIMITATIONS ON ASSESSMENT AND COLLECTION

SEC. 6501. LIMITATIONS ON ASSESSMENT AND COLLECTION.

  (a) General rule.--Except as otherwise provided in this 
section, the amount of any tax imposed by this title shall be 
assessed within 3 years after the return was filed (whether or 
not such return was filed on or after the date prescribed) or, 
if the tax is payable by stamp, at any time after such tax 
became due and before the expiration of 3 years after the date 
on which any part of such tax was paid, and no proceeding in 
court without assessment for the collection of such tax shall 
be begun after the expiration of such period. For purposes of 
this chapter, the term ``return'' means the return required to 
be filed by the taxpayer (and does not include a return of any 
person from whom the taxpayer has received an item of income, 
gain, loss, deduction, or credit).
  (b) Time return deemed filed.--
          (1) Early return.--For purposes of this section, a 
        return of tax imposed by this title, except tax imposed 
        by chapter 3, 4, 21, or 24, filed before the last day 
        prescribed by law or by regulations promulgated 
        pursuant to law for the filing thereof, shall be 
        considered as filed on such last day.
          (2) Return of certain employment and withholding 
        taxes.--For purposes of this section, if a return of 
        tax imposed by chapter 3, 4, 21, or 24 for any period 
        ending with or within a calendar year is filed before 
        April 15 of the succeeding calendar year, such return 
        shall be considered filed on April 15 of such calendar 
        year.
          (3) Return executed by Secretary.--Notwithstanding 
        the provisions of paragraph (2) of section 6020(b), the 
        execution of a return by the Secretary pursuant to the 
        authority conferred by such section shall not start the 
        running of the period of limitations on assessment and 
        collection.
          (4) Return of excise taxes.--For purposes of this 
        section, the filing of a return for a specified period 
        on which an entry has been made with respect to a tax 
        imposed under a provision of subtitle D (including a 
        return on which an entry has been made showing no 
        liability for such tax for such period) shall 
        constitute the filing of a return of all amounts of 
        such tax which, if properly paid, would be required to 
        be reported on such return for such period.
  (c) Exceptions.--
          (1) False return.--In the case of a false or 
        fraudulent return with the intent to evade tax, the tax 
        may be assessed, or a proceeding in court for 
        collection of such tax may be begun without assessment, 
        at any time.
          (2) Willful attempt to evade tax.--In case of a 
        willful attempt in any manner to defeat or evade tax 
        imposed by this title (other than tax imposed by 
        subtitle A or B), the tax may be assessed, or a 
        proceeding in court for the collection of such tax may 
        be begun without assessment, at any time.
          (3) No return.--In the case of failure to file a 
        return, the tax may be assessed, or a proceeding in 
        court for the collection of such tax may be begun 
        without assessment, at any time.
          (4) Extension by agreement.--
                  (A) In general.--Where, before the expiration 
                of the time prescribed for the assessment of 
                any tax imposed by this title, except the 
                estate tax provided in chapter 11, both the 
                Secretary and the taxpayer have consented in 
                writing to its assessment after such time, the 
                tax may be assessed at any time prior to the 
                expiration of the period agreed upon. The 
                period so agreed upon may be extended by 
                subsequent agreements in writing made before 
                the expiration of the period previously agreed 
                upon.
                  (B) Notice to taxpayer of right to refuse or 
                limit extension.--The Secretary shall notify 
                the taxpayer of the taxpayer's right to refuse 
                to extend the period of limitations, or to 
                limit such extension to particular issues or to 
                a particular period of time, on each occasion 
                when the taxpayer is requested to provide such 
                consent.
          (5) Tax resulting from changes in certain income tax 
        or estate tax credits.--For special rules applicable in 
        cases where the adjustment of certain taxes allowed as 
        a credit against income taxes or estate taxes results 
        in additional tax, see section 905(c) (relating to the 
        foreign tax credit for income tax purposes) and section 
        2016 (relating to taxes of foreign countries, States, 
        etc., claimed as credit against estate taxes).
          (6) Termination of private foundation status.--In the 
        case of a tax on termination of private foundation 
        status under section 507, such tax may be assessed, or 
        a proceeding in court for the collection of such tax 
        may be begun without assessment, at any time.
          (7) Special rule for certain amended returns.--Where, 
        within the 60-day period ending on the day on which the 
        time prescribed in this section for the assessment of 
        any tax imposed by subtitle A for any taxable year 
        would otherwise expire, the Secretary receives a 
        written document signed by the taxpayer showing that 
        the taxpayer owes an additional amount of such tax for 
        such taxable year, the period for the assessment of 
        such additional amount shall not expire before the day 
        60 days after the day on which the Secretary receives 
        such document.
          (8) Failure to notify Secretary of certain foreign 
        transfers.--
                  (A) In general.--In the case of any 
                information which is required to be reported to 
                the Secretary pursuant to an election under 
                section 1295(b) or under section 1298(f), 6038, 
                6038A, 6038B, 6038D, 6046, 6046A, or 6048, the 
                time for assessment of any tax imposed by this 
                title with respect to any tax return, event, or 
                period to which such information relates shall 
                not expire before the date which is 3 years 
                after the date on which the Secretary is 
                furnished the information required to be 
                reported under such section.
                  (B) Application to failures due to reasonable 
                cause.--If the failure to furnish the 
                information referred to in subparagraph (A) is 
                due to reasonable cause and not willful 
                neglect, subparagraph (A) shall apply only to 
                the item or items related to such failure.
          (9) Gift tax on certain gifts not shown on return.--
        If any gift of property the value of which (or any 
        increase in taxable gifts required under section 
        2701(d) which) is required to be shown on a return of 
        tax imposed by chapter 12 (without regard to section 
        2503(b)), and is not shown on such return, any tax 
        imposed by chapter 12 on such gift may be assessed, or 
        a proceeding in court for the collection of such tax 
        may be begun without assessment, at any time. The 
        preceding sentence shall not apply to any item which is 
        disclosed in such return, or in a statement attached to 
        the return, in a manner adequate to apprise the 
        Secretary of the nature of such item.
          (10) Listed transactions.--If a taxpayer fails to 
        include on any return or statement for any taxable year 
        any information with respect to a listed transaction 
        (as defined in section 6707A(c)(2)) which is required 
        under section 6011 to be included with such return or 
        statement, the time for assessment of any tax imposed 
        by this title with respect to such transaction shall 
        not expire before the date which is 1 year after the 
        earlier of--
                  (A) the date on which the Secretary is 
                furnished the information so required, or
                  (B) the date that a material advisor meets 
                the requirements of section 6112 with respect 
                to a request by the Secretary under section 
                6112(b) relating to such transaction with 
                respect to such taxpayer.
          (11) Certain orders of criminal restitution.--In the 
        case of any amount described in section 6201(a)(4), 
        such amount may be assessed, or a proceeding in court 
        for the collection of such amount may be begun without 
        assessment, at any time.
          (12) Certain taxes attributable to partnership 
        adjustments.--In the case of any partnership adjustment 
        determined under subchapter C of chapter 63, the period 
        for assessment of any tax imposed under chapter 2 or 2A 
        which is attributable to such adjustment shall not 
        expire before the date that is 1 year after--
                  (A) in the case of an adjustment pursuant to 
                the decision of a court in a proceeding brought 
                under section 6234, such decision becomes 
                final, or
                  (B) in any other case, 90 days after the date 
                on which the notice of the final partnership 
                adjustment is mailed under section 6231.
  (d) Request for prompt assessment.--Except as otherwise 
provided in subsection (c), (e), or (f), in the case of any tax 
(other than the tax imposed by chapter 11 of subtitle B, 
relating to estate taxes) for which return is required in the 
case of a decedent, or by his estate during the period of 
administration, or by a corporation, the tax shall be assessed, 
and any proceeding in court without assessment for the 
collection of such tax shall be begun, within 18 months after 
written request therefor (filed after the return is made and 
filed in such manner and such form as may be prescribed by 
regulations of the Secretary) by the executor, administrator, 
or other fiduciary representing the estate of such decedent, or 
by the corporation, but not after the expiration of 3 years 
after the return was filed. This subsection shall not apply in 
the case of a corporation unless--
          (1)(A) such written request notifies the Secretary 
        that the corporation contemplates dissolution at or 
        before the expiration of such 18-month period, (B) the 
        dissolution is in good faith begun before the 
        expiration of such 18-month period, and (C) the 
        dissolution is completed;
          (2)(A) such written request notifies the Secretary 
        that a dissolution has in good faith been begun, and 
        (B) the dissolution is completed; or
          (3) a dissolution has been completed at the time such 
        written request is made.
  (e) Substantial omission of items.--Except as otherwise 
provided in subsection (c)--
          (1) Income taxes.--In the case of any tax imposed by 
        subtitle A--
                  (A) General rule.--If the taxpayer omits from 
                gross income an amount properly includible 
                therein and--
                          (i) such amount is in excess of 25 
                        percent of the amount of gross income 
                        stated in the return, or
                          (ii) such amount--
                                  (I) is attributable to one or 
                                more assets with respect to 
                                which information is required 
                                to be reported under section 
                                6038D (or would be so required 
                                if such section were applied 
                                without regard to the dollar 
                                threshold specified in 
                                subsection (a) thereof and 
                                without regard to any 
                                exceptions provided pursuant to 
                                subsection (h)(1) thereof), and
                                  (II) is in excess of $5,000,
                the tax may be assessed, or a proceeding in 
                court for collection of such tax may be begun 
                without assessment, at any time within 6 years 
                after the return was filed.
                  (B) Determination of gross income.--For 
                purposes of subparagraph (A)--
                          (i) In the case of a trade or 
                        business, the term ``gross income'' 
                        means the total of the amounts received 
                        or accrued from the sale of goods or 
                        services (if such amounts are required 
                        to be shown on the return) prior to 
                        diminution by the cost of such sales or 
                        services;
                          (ii) An understatement of gross 
                        income by reason of an overstatement of 
                        unrecovered cost or other basis is an 
                        omission from gross income; and
                          (iii) In determining the amount 
                        omitted from gross income (other than 
                        in the case of an overstatement of 
                        unrecovered cost or other basis), there 
                        shall not be taken into account any 
                        amount which is omitted from gross 
                        income stated in the return if such 
                        amount is disclosed in the return, or 
                        in a statement attached to the return, 
                        in a manner adequate to apprise the 
                        Secretary of the nature and amount of 
                        such item.
                  (C) Constructive dividends.--If the taxpayer 
                omits from gross income an amount properly 
                includible therein under section 951(a), the 
                tax may be assessed, or a proceeding in court 
                for the collection of such tax may be done 
                without assessing, at any time within 6 years 
                after the return was filed.
          (2) Estate and gift taxes.--In the case of a return 
        of estate tax under chapter 11 or a return of gift tax 
        under chapter 12, if the taxpayer omits from the gross 
        estate or from the total amount of the gifts made 
        during the period for which the return was filed items 
        includible in such gross estate or such total gifts, as 
        the case may be, as exceed in amount 25 percent of the 
        gross estate stated in the return or the total amount 
        of gifts stated in the return, the tax may be assessed, 
        or a proceeding in court for the collection of such tax 
        may be begun without assessment, at any time within 6 
        years after the return was filed. In determining the 
        items omitted from the gross estate or the total gifts, 
        there shall not be taken into account any item which is 
        omitted from the gross estate or from the total gifts 
        stated in the return if such item is disclosed in the 
        return, or in a statement attached to the return, in a 
        manner adequate to apprise the Secretary of the nature 
        and amount of such item.
          (3) Excise taxes.--In the case of a return of a tax 
        imposed under a provision of subtitle D, if the return 
        omits an amount of such tax properly includible thereon 
        which exceeds 25 percent of the amount of such tax 
        reported thereon, the tax may be assessed, or a 
        proceeding in court for the collection of such tax may 
        be begun without assessment, at any time within 6 years 
        after the return is filed. In determining the amount of 
        tax omitted on a return, there shall not be taken into 
        account any amount of tax imposed by chapter 41, 42, 
        43, or 44 which is omitted from the return if the 
        transaction giving rise to such tax is disclosed in the 
        return, or in a statement attached to the return, in a 
        manner adequate to apprise the Secretary of the 
        existence and nature of such item.
  (f) Personal holding company tax.--If a corporation which is 
a personal holding company for any taxable year fails to file 
with its return under chapter 1 for such year a schedule 
setting forth--
          (1) the items of gross income and adjusted ordinary 
        gross income, described in section 543, received by the 
        corporation during such year, and
          (2) the names and addresses of the individuals who 
        owned, within the meaning of section 544 (relating to 
        rules for determining stock ownership), at any time 
        during the last half of such year more than 50 percent 
        in value of the outstanding capital stock of the 
        corporation,
the personal holding company tax for such year may be assessed, 
or a proceeding in court for the collection of such tax may be 
begun without assessment, at any time within 6 years after the 
return for such year was filed.
  (g) Certain income tax returns of corporations.--
          (1) Trusts or partnerships.--If a taxpayer determines 
        in good faith that it is a trust or partnership and 
        files a return as such under subtitle A, and if such 
        taxpayer is thereafter held to be a corporation for the 
        taxable year for which the return is filed, such return 
        shall be deemed the return of the corporation for 
        purposes of this section.
          (2) Exempt organizations.--If a taxpayer determines 
        in good faith that it is an exempt organization and 
        files a return as such under section 6033, and if such 
        taxpayer is thereafter held to be a taxable 
        organization for the taxable year for which the return 
        is filed, such return shall be deemed the return of the 
        organization for purposes of this section.
          (3) DISC.--If a corporation determines in good faith 
        that it is a DISC (as defined in section 992(a)) and 
        files a return as such under section 6011(c)(2) and if 
        such corporation is thereafter held to be a corporation 
        which is not a DISC for the taxable year for which the 
        return is filed, such return shall be deemed the return 
        of a corporation which is not a DISC for purposes of 
        this section.
  (h) Net operating loss or capital loss carrybacks.--In the 
case of a deficiency attributable to the application to the 
taxpayer of a net operating loss carryback or a capital loss 
carryback (including deficiencies which may be assessed 
pursuant to the provisions of section 6213(b)(3)), such 
deficiency may be assessed at any time before the expiration of 
the period within which a deficiency for the taxable year of 
the net operating loss or net capital loss which results in 
such carryback may be assessed.
  (i) Foreign tax carrybacks.--In the case of a deficiency 
attributable to the application to the taxpayer of a carryback 
under section 904(c) (relating to carryback and carryover of 
excess foreign taxes) or under section 907(f) (relating to 
carryback and carryover of disallowed foreign oil and gas 
taxes), such deficiency may be assessed at any time before the 
expiration of one year after the expiration of the period 
within which a deficiency may be assessed for the taxable year 
of the excess taxes described in section 904(c) or 907(f) which 
result in such carryback.
  (j) Certain credit carrybacks.--
          (1) In general.--In the case of a deficiency 
        attributable to the application to the taxpayer of a 
        credit carryback (including deficiencies which may be 
        assessed pursuant to the provisions of section 
        6213(b)(3)), such deficiency may be assessed at any 
        time before the expiration of the period within which a 
        deficiency for the taxable year of the unused credit 
        which results in such carryback may be assessed, or 
        with respect to any portion of a credit carryback from 
        a taxable year attributable to a net operating loss 
        carryback, capital loss carryback, or other credit 
        carryback from a subsequent taxable year, at any time 
        before the expiration of the period within which a 
        deficiency for such subsequent taxable year may be 
        assessed.
          (2) Credit carryback defined.--For purposes of this 
        subsection, the term ``credit carryback'' has the 
        meaning given such term by section 6511(d)(4)(C).
  (k) Tentative carryback adjustment assessment period.--In a 
case where an amount has been applied, credited, or refunded 
under section 6411 (relating to tentative carryback and refund 
adjustments) by reason of a net operating loss carryback, a 
capital loss carryback, or a credit carryback (as defined in 
section 6511(d)(4)(C)) to a prior taxable year, the period 
described in subsection (a) of this section for assessing a 
deficiency for such prior taxable year shall be extended to 
include the period described in subsection (h) or (j), 
whichever is applicable; except that the amount which may be 
assessed solely by reason of this subsection shall not exceed 
the amount so applied, credited, or refunded under section 
6411, reduced by any amount which may be assessed solely by 
reason of subsection (h) or (j), as the case may be.
  (l) Special rule for chapter 42 and similar taxes.--
          (1) In general.--For purposes of any tax imposed by 
        section 4912, by chapter 42 (other than section 4940), 
        or by section 4975, the return referred to in this 
        section shall be the return filed by the private 
        foundation, plan, trust, or other organization (as the 
        case may be) for the year in which the act (or failure 
        to act) giving rise to liability for such tax occurred. 
        For purposes of section 4940, such return is the return 
        filed by the private foundation for the taxable year 
        for which the tax is imposed.
          (2) Certain contributions to section 501(c)(3) 
        organizations.--In the case of a deficiency of tax of a 
        private foundation making a contribution in the manner 
        provided in section 4942(g)(3) (relating to certain 
        contributions to section 501(c)(3) organizations) 
        attributable to the failure of a section 501(c)(3) 
        organization to make the distribution prescribed by 
        section 4942(g)(3), such deficiency may be assessed at 
        any time before the expiration of one year after the 
        expiration of the period within which a deficiency may 
        be assessed for the taxable year with respect to which 
        the contribution was made.
          (3) Certain set-asides described in section 
        4942(g)(2).--In the case of a deficiency attributable 
        to the failure of an amount set aside by a private 
        foundation for a specific project to be treated as a 
        qualifying distribution under the provisions of section 
        4942(g)(2)(B)(ii), such deficiency may be assessed at 
        any time before the expiration of 2 years after the 
        expiration of the period within which a deficiency may 
        be assessed for the taxable year to which the amount 
        set aside relates.
          (4) Individual retirement plans.--
                  (A) In general.--For purposes of any tax 
                imposed by section 4973 or 4974 in connection 
                with an individual retirement plan, the return 
                referred to in this section shall include the 
                income tax return filed by the person on whom 
                the tax under such section is imposed for the 
                year in which the act (or failure to act) 
                giving rise to the liability for such tax 
                occurred.
                  (B) Rule in case of individuals not required 
                to file return.--In the case of a person who is 
                not required to file an income tax return for 
                such year--
                          (i) the return referred to in this 
                        section shall be the income tax return 
                        that such person would have been 
                        required to file but for the fact that 
                        such person was not required to file 
                        such return, and
                          (ii) the 3-year period referred to in 
                        subsection (a) with respect to the 
                        return shall be deemed to begin on the 
                        date by which the return would have 
                        been required to be filed (excluding 
                        any extension thereof).
                  (C) Period for assessment in case of income 
                tax return.--In any case in which the return 
                with respect to a tax imposed by section 4973 
                is the individual's income tax return for 
                purposes of this section, subsection (a) shall 
                be applied by substituting a 6-year period in 
                lieu of the 3-year period otherwise referred to 
                in such subsection.
                  (D) Exception for certain acquisitions of 
                property.--In the case of any tax imposed by 
                section 4973 that is attributable to acquiring 
                property for less than fair market value, 
                subparagraph (A) shall not apply.
  (m) Deficiencies attributable to election of certain 
credits.--The period for assessing a deficiency attributable to 
any election under section 30B(h)(9), 30C(e)(4), 30D(f)(6), 
35(g)(11), 40(f), 43, 45B, 45C(d)(4), 45H(g), or 51(j) (or any 
revocation thereof) shall not expire before the date 1 year 
after the date on which the Secretary is notified of such 
election (or revocation).
  (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.
  [(n)] (o) Cross reference.--For period of limitations for 
assessment and collection in the case of a joint income return 
filed after separate returns have been filed, see section 
6013(b)(3) and (4).

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