TSCPA Issues Letters Supporting Bill for Small Business Relief from IRC Sec. 4980D Excise Tax

Sept. 10, 2015

This week, TSCPA issued letters to select U.S. House and Senate committees in strong support of H.R. 2911 (and companion bill S. 1697) – the Small Business Healthcare Relief Act of 2015. The bipartisan legislation would enable small businesses to continue offering pre-tax reimbursement for employees’ stand-alone HRAs and alternative individual health coverage without penalty.

Small businesses need the flexibility to provide employees health care using the most cost-effective method with relief from the threat of the harsh penalties of the IRC Sec. 4980D excise tax. H.R. 2911 and S. 1697 would allow small businesses to reimburse employees or directly pay for health insurance and qualified medical expenses that, while not required under the ACA employer-responsibility provisions, would extend broader insurance coverage, thereby achieving a central goal of the act.

TSCPA also asked that the legislation be expanded to include penalty exception for greater than 2 percent shareholder-employee health arrangements from the group health insurance requirements.

Read the letter
Read H.R. 2911