Pension & Benefits NetNews – June 23, 2020

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Featured This Week

Employee Benefits Management News

  • IRS proposes treating payments for direct primary care arrangements, health care sharing ministry memberships as medical expenses
  • CMS encourages non-federal government plans to expand access to telehealth options, prescription drugs during COVID-19 outbreak
  • IRS announces adjusted PCORI fee
  • IRS rules encourage leave-based donation programs for victims of COVID-19

Pension Plan Guide News

  • IRS postpones certain deadlines affecting employee benefits and IRAs due to COVID-19 emergency
  • IRS releases final regs updating information reporting regulations for tax-exempt organizations
  • IRS proposed regs clarify premium tax credit eligibility

Employee Benefits Management News

IRS proposes treating payments for direct primary care arrangements, health care sharing ministry memberships as medical expenses

Proposed regulations would define expenditures for direct primary care arrangements and health care sharing ministry memberships as amounts paid for medical care. Thus, amounts paid for those arrangements may be deductible medical expenses. For more information, see ¶2134J.

        (Read Cheetah) »

CMS encourages non-federal government plans to expand access to telehealth options, prescription drugs during COVID-19 outbreak

The Centers for Medicare & Medicaid Services (CMS) has issued a letter highlighting COVID-19 guidance relevant to non-Federal governmental plan sponsors. For more information, see ¶2134K.

        (Read Cheetah) »

IRS announces adjusted PCORI fee

In Notice 2020-44, the IRS has provided the adjusted applicable dollar amount to be multiplied by the average number of covered lives for purposes of the fee imposed by Code Secs. 4375 and 4376 on the issuer of a specified health insurance policy for policy years and plan years that end after October 1, 2019, and before October 1, 2020. The fee helps fund the Patient-Centered Outcomes Research Institute (PCORI). For details, see ¶2134L.

        (Read Cheetah) »

IRS rules encourage leave-based donation programs for victims of COVID-19

The IRS has provided relief to support employer leave-based donation programs to aid victims of the COVID-19 (coronavirus) pandemic. Under these programs, employees may forgo vacation, sick or personal leave in exchange for cash payments the employer makes to charitable organizations providing relief for the victims of the pandemic. For more information see ¶2134N.

        (Read Cheetah) »

Pension Plan Guide News

IRS postpones certain deadlines affecting employee benefits and IRAs due to COVID-19 emergency

The IRS is postponing deadlines for certain time-sensitive actions due to the Coronavirus Disease 2019 (COVID-19) emergency. With certain exceptions, the relief postpones deadlines for certain actions due to be performed on or after March 30, 2020, and before July 15, 2020. The revised deadline for an affected taxpayer to perform a time-sensitive action described in the relief is July 15, 2020, unless a different revised deadline is specified. For employee benefit plans (including a 403(b) plan, a governmental section 457(b) plan, a SEP plan described in Code Sec. 408(k), or a SIMPLE IRA plan described in Code Sec. 408(p)), or any sponsor, administrator, participant, beneficiary, disqualified person, or other person with respect to the plan, the relief affects time-sensitive actions such as: (1) applying for a funding waiver under Code Sec. 412(c) for a qualified defined benefit plan that is not a multiemployer plan; (2) for multiemployer defined benefit pension plans, actions due to be performed on or before the dates in Code Sec. 432(b)(3) for the certification of funded status and the notice to interested parties of that certification, Code Sec. 432(c)(1) and Code Sec. 432(e)(1) for the adoption of, and the notification to the bargaining parties of the schedules under a funding improvement plan or rehabilitation plan, or Code Sec. 432(c)(6) and Code Sec. 432(e)(3) for the annual update of a funding improvement plan and its contribution schedules, or rehabilitation plan and its contribution schedules, and the filing of those updates with the Form 5500 annual return; and (3) for cooperative and small employer charity pension (CSEC) plans, actions to be performed on or before the dates in Code Sec. 433(c)(9) for making a contribution required to be made for the plan year, Code Sec. 433(f)(3)(B) for making required quarterly installments, Code Sec. 433(j)(3) for the adoption of a funding restoration plan, or Code Sec. 433(j)(4) for the certification of funded status. For more information, see ¶17169h.

        (Read Cheetah) »

IRS releases final regs updating information reporting regulations for tax-exempt organizations

The IRS has released final regulations updating information reporting regulations under Code Sec. 6033, that are generally applicable to organizations exempt from tax under Code Sec. 501(a), to reflect statutory amendments and certain grants of reporting relief for tax-exempt organizations required to file an annual Form 990 (Return of Organization Exempt From Income Tax) or Form 990-EZ (Short Form Return of Organization Exempt From Income Tax) information returns. The final regulations are updated to reflect changes that have been made since the previous regulations were adopted. The regulations in effect prior to these final regulations, which remain largely unchanged, reflected many of the statutory requirements of Code Sec. 6033. The final regulations are effective on May 28, 2020. The regulations are generally applicable for returns filed on or after January 30, 2020. For more information, see ¶172ba.

        (Read Cheetah) »

IRS proposed regs clarify premium tax credit eligibility

The IRS has issued proposed regulations that affect eligibility for the premium tax credit, computation of the premium tax credit, reconciliation of advance credit payments with the premium tax credit a taxpayer is allowed for the tax year, and income tax return filing requirements related to the premium tax credit. For tax years beginning after December 31, 2017, and before January 1, 2026, the term “exemption amount” means zero, pursuant to Code Sec. 151(d)(5), as added by section 11041 of the Tax Cuts and Jobs Act (TCJA, P. L. 115-97). Although the amount of the deduction for personal exemptions is reduced to zero for those years, taxpayers must include on their tax returns the names and TINs of individuals for whom they are allowed a personal exemption deduction in order to claim various tax benefits with respect to those individuals, including a premium tax credit. The proposed regulations clarify that the reduction of the personal exemption deduction to zero does not affect the ability of individual taxpayers to claim the premium tax credit. Specifically, the proposed regulations amend the definition of family to mean the taxpayer, including both spouses in the case of a joint return, and any other individual for whom the taxpayer is allowed a personal exemption deduction and whom the taxpayer properly reports on the taxpayer’s income tax return for the taxable year. The proposed regulations provide that an individual is reported on the taxpayer’s income tax return if the individual’s name and TIN are listed on the taxpayer’s Form 1040 series return. These regulations are proposed to apply to tax years ending after May 27, 2020. For more information, see ¶20265e.

        (Read Cheetah) »

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