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ID Protection Services Not Taxable to Victims of a Data Breach

In Announcement 2015-22, the IRS announced that the value of identity protection services, such as credit monitoring, identity theft insurance policies, and identity restoration services, provided to an employee whose personal information may have been compromised in a data breach is not taxable as gross income. The Announcement does not apply to cash received in lieu of identity protection services; identity protection services received for reasons other than as a result of a data breach, such as services received in connection with an employee?ÇÖs compensation or benefits package; or proceeds actually received under an identity theft insurance policy. Announcement 2015-22 is available here.

HHS Requests Comments for Transparency Reporting for Qualified Health Plans; Transparency Reporting for Non-QHPs and Non-Grandfathered Plans to be Proposed Later

The U.S. Department of Health and Human Services (?Ç£HHS?Ç¥) recently issued a request for comments on the transparency provisions of Section 1311(e)(3) of the Affordable Care Act (the ?Ç£ACA?Ç¥), which requires issuers of qualified health plans (?Ç£QHPs?Ç¥) to submit and make available transparency in coverage data. The proposed data collection would collect information from QHP issuers in federally facilitated exchanges under the ACA. Separately, HHS, the U.S. Department of Labor, and the Treasury (collectively, the ?Ç£Departments?Ç¥) issued a notice of their intent to propose transparency reporting for non-QHP issuers and non-grandfathered group health plans in the future. The requirements for such reporting may differ from the information requested for QHPs. HHS?ÇÖ request for comments is available here. The Departments?ÇÖ joint notice is available here.

August 2015