[Federal Register Volume 79, Number 144 (Monday, July 28, 2014)]
[Proposed Rules]
[Pages 43693-43694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17696]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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 

  Federal Register / Vol. 79, No. 144 / Monday, July 28, 2014 / 
Proposed Rules  

[[Page 43693]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-104579-13]
RIN 1545-BM09


Rules Regarding the Health Insurance Premium Tax Credit

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing final and temporary regulations 
under section 36B of the Internal Revenue Code (Code) relating to the 
health insurance premium tax credit. The regulations provide guidance 
to individuals who enroll in qualified health plans through Affordable 
Insurance Exchanges (Exchanges) and claim the premium tax credit, and 
Exchanges that make qualified health plans available to individuals and 
employers. The text of those temporary regulations also serves as the 
text of these proposed regulations.

DATES: Comments and requests for a public hearing must be received by 
October 27, 2014.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-104579-13), Internal 
Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. 
Taxpayers also may submit comments electronically via the Federal 
eRulemaking Portal at www.regulations.gov (IRS REG-104579-13).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Arvind Ravichandran, (202) 317-4718; concerning submission of comments 
or to request a hearing, Oluwafunmilayo Taylor, (202) 317-6901 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Final and temporary regulations in the Rules and Regulations 
section of this issue of the Federal Register amend the Income Tax 
Regulations (26 CFR Part 1) relating to section 36B and section 162(l) 
of the Code. The final and temporary regulations provide guidance for 
individuals who enroll in qualified health plans through Affordable 
Insurance Exchanges (Exchanges) and claim the premium tax credit, and 
Exchanges that make qualified health plans available to individuals and 
employers. The text of those temporary regulations also serves as the 
text of these proposed regulations. The preamble to the final and 
temporary regulations explains the amendments.

Proposed Effective Date

    These regulations are proposed to apply for taxable years ending 
after December 31, 2013. See Sec.  1.36B-1(o). Taxpayers must apply the 
final and temporary regulations until publication of final regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It also has 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations, and because 
the regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Code, this regulation has 
been submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS as prescribed in this preamble under ADDRESSES heading. The 
IRS and the Treasury Department request comments on all aspects of the 
proposed rules. All comments will be available at www.regulations.gov 
or upon request. A public hearing will be scheduled if requested in 
writing by any person that timely submits written comments. If a public 
hearing is scheduled, notice of the date, time, and place for the 
public hearing will be published in the Federal Register.

Drafting Information

    The principal authors of these regulations are Arvind Ravichandran, 
Shareen Pflanz and Steve Toomey of the Office of Associate Chief 
Counsel (Income Tax & Accounting). However, other personnel from the 
IRS and the Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

0
Par. 2. Section 1.36B-2 is amended by revising paragraphs (b)(2) and 
(c)(3)(v)(C), and adding paragraph (d) to read as follows:


Sec.  1.36B-2  Eligibility for premium tax credit.

* * * * *
    (b) * * *
    (2) [The text of the proposed amendment to Sec.  1.36B-2(b)(2) is 
the same as the text of Sec.  1.36B-2T(b)(2) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (c) * * *
    (3) * * *
    (v) * * *
    (C) [The text of the proposed amendment to Sec.  1.36B-
2(c)(3)(v)(C) is the same as the text of Sec.  1.36B-2T(c)(3)(v)(C) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (d) [The text of the proposed amendment to Sec.  1.36B-2(d) is the 
same as the text of Sec.  1.36B-2T(d) published elsewhere in this issue 
of the Federal Register].

[[Page 43694]]

0
Par. 3. Section 1.36B-3 is amended by revising paragraph (g)(1) and 
adding paragraph (m) to read as follows:


Sec.  1.36B-3  Computing the premium assistance credit amount.

* * * * *
    (g) * * *
    (1) [The text of the proposed amendment to Sec.  1.36B-3(g)(1) is 
the same as the text of Sec.  1.36B-3T(g)(1) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (m) [The text of the proposed amendment to Sec.  1.36B-3(m) is the 
same as the text of Sec.  1.36B-3T(m) published elsewhere in this issue 
of the Federal Register].
0
Par. 4. Section 1.36B-4 is amended by:
0
1. Revising paragraph (a)(1)(ii).
0
2. Adding paragraph (a)(3)(iii).
0
3. In paragraph (a)(4), revising Example 4 and adding Examples 10, 11, 
12, 13, and 14.
0
4. Revising paragraphs (b)(3) and (b)(4).
0
5. Removing paragraph (b)(5).
0
6. Redesignating paragraph (b)(6) as paragraph (b)(5), and revising 
Example 9, and adding Example 10 to newly redesignated paragraph 
(b)(5).
0
7. Adding paragraph (c).


Sec.  1.36B-4  Reconciling the premium tax credit with advance credit 
payments.

    (a) * * *
    (1) * * *
    (ii) [The text of the proposed amendment to Sec.  1.36B-4(a)(1)(ii) 
is the same as the text of Sec.  1.36B-4T(a)(1)(ii) published elsewhere 
in this issue of the Federal Register].
* * * * *
    (3) * * *
    (iii) [The text of the proposed amendment to Sec.  1.36B-
4(a)(3)(iii) is the same as the text of Sec.  1.36B-4T(a)(3)(iii) 
published elsewhere in this issue of the Federal Register].
    (4) [The text of the proposed amendment to Sec.  1.36B-4, Example 
4, Example 10, Example 11, Example 12, Example 13, and Example 14 of 
paragraph (a)(4) is the same as the text of Sec.  1.36B-4T(a)(4), 
Example 4, Example 10, Example 11, Example 12, Example 13, and Example 
14 published elsewhere in this issue of the Federal Register].
* * * * *
    (b) * * *
    (3) [The text of the proposed amendment to Sec.  1.36B-4(b)(3) is 
the same as the text of Sec.  1.36B-4T(b)(3) published elsewhere in 
this issue of the Federal Register].
    (4) [The text of the proposed amendment to Sec.  1.36B-4(b)(4) is 
the same as the text of Sec.  1.36B-4T(b)(4) published elsewhere in 
this issue of the Federal Register].
    (5) Examples. * * *
    [The text of the proposed amendment to Sec.  1.36B-4, Example 9 and 
Example 10 of paragraph (b)(5) is the same as the text of Sec.  1.36B-
4T, Example 9 and Example 10 of paragraph (b)(5) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (c) [The text of the proposed amendment to Sec.  1.36B-4(c) is the 
same as the text of Sec.  1.36B-4T(c) published elsewhere in this issue 
of the Federal Register].
0
Par 5. Section 1.162(l)-1 is added to read as follows:


Sec.  1.162(l)-1.  Deduction for health insurance costs of self-
employed individuals.

    [The text of the proposed amendment to Sec.  1.162(l)-1(a) through 
(c) is the same as the text of Sec.  1.162(l)-1T(a) through (c) 
published elsewhere in this issue of the Federal Register].

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2014-17696 Filed 7-24-14; 4:15 pm]
BILLING CODE 4830-01-P