[Federal Register Volume 78, Number 248 (Thursday, December 26, 2013)]
[Rules and Regulations]
[Pages 78255-78256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30742]



[[Page 78255]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9632]
RIN 1545-BL36


Shared Responsibility Payment for Not Maintaining Minimum 
Essential Coverage; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9632) that were published in the Federal Register on Friday, August 30, 
2013. The final regulations provide guidance to individual taxpayers on 
the liability under section 5000A of the Internal Revenue Code for the 
shared responsibility payment for not maintaining minimum essential 
coverage.

DATES: This correction is effective December 26, 2013 and applicable 
beginning August 30, 2013.

FOR FURTHER INFORMATION CONTACT: John Lovelace, at (202) 622-4960 (not 
a toll free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9632) that are the subject of this 
correction is under section 5000A of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 9632), August 30, 2013 (78 
FR 53646), contain errors that may prove to be misleading and are in 
need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by correcting 
the sectional authority for Sec.  1.5000A-4 to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.5000A-3 also issued under 26 U.S.C. 5000A(e)(4).

0
Par. 2. Section 1.5000A-0 is amended by revising the entry in the table 
of contents for Sec.  1.5000A-2 (b)(2)(iii) to read as follows:


Sec.  1.5000A-0  Table of Contents.

* * * * *


Sec.  1.5000A 2  Minimum essential coverage.

    (a) * * *
    (b) * * *
    (2) * * *
    (iii) Limited-benefit TRICARE programs.
* * * * *
0
Par. 3. Section 1.5000A-1 is amended by revising paragraphs (d)(6) and 
(7) to read as follows:


Sec.  1.5000A-1  Maintenance of minimum essential coverage and 
liability for the shared responsibility payment.

* * * * *
    (d) * * *
    (6) Group health insurance coverage. Group health insurance 
coverage has the same meaning as in section 2791(b)(4) of the Public 
Health Service Act (42 U.S.C. 300gg-91(b)(4)).
    (7) Group health plan. Group health plan has the same meaning as in 
section 2791(a)(1) of the Public Health Service Act (42 U.S.C. 300gg-
91(a)(1)).
* * * * *
0
Par. 4. Section 1.5000A-2 is amended by revising paragraphs (b)(1)(iv), 
(b)(2)(iii), (c)(1)(i)(B), (c)(2), and the last sentence of paragraph 
(d)(2) to read as follows:


Sec.  1.5000A-2  Minimum essential coverage.

* * * * *
    (b) * * *
    (1) * * *
    (iv) TRICARE. Medical coverage under chapter 55 of Title 10, 
U.S.C., including coverage under the TRICARE program;
* * * * *
    (2) * * *
    (iii) Limited-benefit TRICARE programs. [Reserved]
    (c) * * *
    (1) * * *
    (i) * * *
    (B) Any other plan or coverage offered in the small or large group 
market within a State; or
* * * * *
    (2) Government-sponsored program generally not an eligible 
employer-sponsored plan. Except for the program identified in paragraph 
(b)(1)(vii) of this section, a government-sponsored program described 
in paragraph (b) of this section is not an eligible employer-sponsored 
plan.
    (d) * * *
    (2) Qualified health plan offered by an exchange. * * * If a 
territory of the United States elects to establish an Exchange under 
section 1323(a)(1) and (b) of the Affordable Care Act (42 U.S.C. 
18043(a)(1), (b)), a qualified health plan offered by that Exchange is 
a plan in the individual market.
* * * * *
0
Par. 5. Section 1.5000A-3 is amended by revising the first sentence of 
paragraph (e)(4)(ii)(D), the last sentence of paragraph (e)(4)(iii), 
and the heading of (e)(4)(iii) Example 1 to read as follows:


Sec.  1.5000A-3  Exempt individuals.

* * * * *
    (e) * * *
    (4) * * *
    (ii) * * *
    (D) * * * For each individual, affordability under paragraph (e)(4) 
of this section is determined separately for each period described in 
paragraph (e)(4)(ii)(E) of this section that is less than a 12-month 
period. * * *
    (iii) * * * Unless stated otherwise, in each example the taxpayer's 
taxable year is a calendar year, the rate of premium growth has not 
exceeded the rate of income growth since 2013, and the taxpayer is 
ineligible for any of the exemptions described in paragraphs (a) 
through (d) and (f) through (j) of this section for a month.
    Example 1. Unmarried individual with no dependents. * * *
* * * * *
0
Par. 6. Section 1.5000A-4 is amended by revising the second sentence of 
paragraphs (d) Example 1(ii), (d) Example 5(iii), and the third 
sentence of (d) Example 5(iv) to read as follows:


Sec.  1.5000A-4  Computation of shared responsibility payment.

* * * * *
    (d) * * *
    Example 1. * * *
    (ii) * * * Under paragraph (b)(2)(i) of this section, G's flat 
dollar amount is $695 (the lesser of $695 and $2,085 ($695 x 3)). * * *
    Example 5. * * *
    (iii) * * * Under paragraph (b)(2)(i) of this section, the flat 
dollar amount is $2,085 (the lesser of $2,085 or $2,085 ($695 x 3)). * 
* *
    (iv) * * * Therefore, under paragraph (a) of this section, the 
shared responsibility payment imposed on S

[[Page 78256]]

and T for 2016 is $1,911.24 (the lesser of $1,911.24 or $11,000).

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2013-30742 Filed 12-24-13; 8:45 am]
BILLING CODE 4830-01-P