Although the Trump Administration has used multiple avenues—including executive orders, enactment of Tax Cuts and Jobs Act legislation and Justice Department authority—in order to undermine it, the controversial Affordable Care Act (ACA) remains alive for the Internal Revenue Service (IRS) because key parts of the healthcare reform are still viable in the tax code. This puts the IRS in a unique, albeit awkward, position until Congress decides to change the law.
Partner Nicole Elliott, a former IRS senior advisor for the ACA, shared her insight with MLex US Tax Watch: "The IRS continues to be in a sticky spot in all of this given the law is what the law is."
The ACA's employer mandate and the revised tax penalty remain in the tax code, requiring all large businesses to offer minimum essential coverage that's "affordable" and provides "minimum value" to full-time employees and their dependents. If not compliant, businesses can still face IRS fines if not compliant despite the current administration's efforts. According to Ms. Elliott, the IRS can continue to have some discretion in this area.
READ: Affordable Care Act Poses Problems for IRS under Trump (Subscription required)
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