[Federal Register Volume 84, Number 219 (Wednesday, November 13, 2019)]
[Rules and Regulations]
[Pages 61547-61548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24671]



[[Page 61547]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 57

[TD 9881]
RIN 1545-BN57


Electronic Filing of the Report of Health Insurance Provider 
Information

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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

SUMMARY: This document contains final regulations amending the Health 
Insurance Providers Fee regulations to require certain covered entities 
engaged in the business of providing health insurance for United States 
health risks to electronically file Form 8963, ``Report of Health 
Insurance Provider Information.'' These final regulations affect those 
entities.

DATES: Effective Date. These regulations are effective on November 13, 
2019.

FOR FURTHER INFORMATION CONTACT: David Bergman, (202) 317-6845 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains final regulations in Title 26 of the Code of 
Federal Regulations under section 9010 of the Patient Protection and 
Affordable Care Act (PPACA), Public Law 111-148, 124 Stat. 119 (2010), 
as amended by section 10905 of PPACA, and as further amended by section 
1406 of the Health Care and Education Reconciliation Act of 2010, 
Public Law 111-152 (124 Stat. 1029 (2010)) (collectively, the 
Affordable Care Act or ACA). The final regulations provide guidance on 
the annual fee imposed on covered entities engaged in the business of 
providing health insurance for United States health risks, and affect 
persons engaged in the business of providing health insurance for 
United States health risks.
    On December 9, 2016, the Treasury Department and the IRS published 
a notice of proposed rulemaking (REG-123829-16) in the Federal 
Register, 81 FR 89020, containing proposed regulations that would amend 
section 57.3(a)(2) of the Health Insurance Providers Fee regulations to 
provide that a covered entity (including a controlled group) reporting 
on a Form 8963 or corrected Form 8963 more than $25 million in net 
premiums written must electronically file the forms after December 31, 
2017. Forms 8963 reporting $25 million or less in net premiums written 
are not required to be electronically filed. The proposed regulations 
also provided that if a Form 8963 or corrected Form 8963 is required to 
be filed electronically, any subsequent Form 8963 filed for the same 
fee year must also be filed electronically, even if the subsequently 
filed Form 8963 reports $25 million or less in net premiums written. In 
addition, the proposed regulations provided that a failure to 
electronically file would be treated as a failure to file for purposes 
of section 57.3(b).
    No comments were received in response to the notice of proposed 
rulemaking. No public hearing was requested or held. This Treasury 
Decision adopts the proposed regulations with no substantive change 
other than the applicability date. The rationale provided in the 
Explanation of Provisions section of the notice of proposed rulemaking 
applies equally to these final regulations. The electronic filing 
requirement will begin in the 2020 fee year because the fee will not be 
collected in 2019.

Special Analyses

    This regulation is not subject to review under section 6(b) of 
Executive Order 12866 pursuant to the Memorandum of Agreement (April 
11, 2018) between the Department of the Treasury and the Office of 
Management and Budget regarding review of tax regulations. It is hereby 
certified that the electronic filing requirement would not have a 
significant economic impact on a substantial number of small entities 
pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6). The 
rule is expected to affect primarily larger entities because the 
electronic filing requirement is only imposed if the filer must report 
more than $25 million in net premiums. Small entities are unlikely to 
report more than $25 million in net premiums, and the rule contains a 
specific exemption from the electronic reporting requirement for 
covered entities that report $25 million or less in net premiums 
written. Accordingly, this rule will not have a significant economic 
impact on a substantial number of small entities.
    Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking preceding these final regulations was 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on the impact on small business, and no 
comments were received.

Drafting Information

    The principal author of these regulations is David Bergman of the 
Office of the Associate Chief Counsel (Procedure and Administration).

List of Subjects in 26 CFR Part 57

    Health insurance, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 57 is amended to read as follows:

PART 57--HEALTH INSURANCE PROVIDERS FEE

0
Paragraph 1. The authority citation for 26 CFR part 57 continues to 
read in part as follows:

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


0
Par. 2. Section 57.3 is amended by revising paragraph (a)(2) to read as 
follows:


Sec.  57.3  Reporting requirements and associated penalties.

    (a) * * *
    (2) Manner of reporting--(i) In general. The IRS may provide rules 
in guidance published in the Internal Revenue Bulletin for the manner 
of reporting by a covered entity under this section, including rules 
for reporting by a designated entity on behalf of a controlled group 
that is treated as a single covered entity.
    (ii) Electronic Filing Required. Any Form 8963 (including corrected 
forms) filed pursuant to paragraph (a)(1) of this section and reporting 
more than $25 million in net premiums written must be filed 
electronically in accordance with the instructions to the form. If a 
Form 8963 or corrected Form 8963 is required to be filed electronically 
under this paragraph (a)(2)(ii), any subsequently filed Form 8963 filed 
for the same fee year must also be filed electronically. For purposes 
of Sec.  57.3(b), any Form 8963 required to be filed electronically 
under this section will not be considered filed unless it is filed 
electronically.
* * * * *

0
Par. 3. Section 57.10 is amended by revising the section heading, 
paragraph (a) and adding paragraph (c) to read as follows:


Sec.  57.10  Applicability date.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
Sec. Sec.  57.1 through 57.9 apply to any fee that is due on or after 
September 30, 2014.
* * * * *

[[Page 61548]]

    (c) Section 57.3(a)(2)(ii) applies to Forms 8963, including 
corrected Forms 8963, filed after December 31, 2019.

Sunita Lough,
Deputy Commissioner for Services and Enforcement.
    Approved: October 29, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2019-24671 Filed 11-8-19; 4:15 pm]
BILLING CODE P