Treasury also announced that, because Information Reporting is key to Treasury?ÇÖs enforcement of the employer coverage mandate and related penalties under PPACA (i.e., ?Ç£Employer Play-or-Pay?Ç¥), the Transition Relief will extend to the Employer Play-or-Pay penalties, and thus such penalties will not apply until 2015. ?áAccording to Treasury, the Transition Relief does not affect compliance with PPACA?ÇÖs individual coverage mandate or access by individuals to premium tax credits available under PPACA; however, it is currently uncertain how the IRS will administer either of these requirements absent Information Reporting. Treasury indicated that formal guidance regarding the Transition Relief would be issued this week.
The U.S. Treasury Department (?Ç£Treasury?Ç¥) announced on July 2, 2013, that the mandatory employer and insurer reporting requirements under Sections 6055 and 6066 of the Internal Revenue Code (?Ç£Information Reporting?Ç¥), as enacted by the Patient Protection and Affordable Care Act (?Ç£PPACA?Ç¥), will be postponed by one year (?Ç£Transition Relief?Ç¥).?á Absent the Transition Relief, Information Reporting would have applied to health coverage provided by employers during 2014.?á The Transition Relief may be viewed as a welcome development by employers who need additional time to implement appropriate procedures for administering Information Reporting and other PPACA requirements.