[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\
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\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\
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\9\Sec. 6724(d)(1)(B)(xxiv), (d)(2)(GG); Treas. Reg. sec. 1.6055-
1(h).
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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.
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\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.
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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\
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\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).
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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\
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\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.
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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.
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\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\
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\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.
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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
* * * * * * *
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.
* * * * * * *
Subtitle F--Procedure and Administration
* * * * * * *
CHAPTER 61--INFORMATION AND RETURNS
Subchapter A--RETURNS AND RECORDS
* * * * * * *
PART III--INFORMATION RETURNS
* * * * * * *
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.
* * * * * * *
CHAPTER 66--LIMITATIONS
* * * * * * *
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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