The IRS recently issued two proposed rules addressing the information reporting requirements for certain employers and insurers under the ACA.

Reporting Requirements for Providers of Minimum Essential Coverage. Beginning with the 2014 tax year, Code section 6055 will require certain entities that provide minimum essential health coverage, including health insurance issuers, sponsors of self-insured health plans, and government agencies that administer government sponsored health insurance programs, to file annual reports providing a list of covered individuals and the months they were covered. This reporting requirement is designed to aid the IRS in determining whether individuals are complying with the ACA's individual mandate and also their eligibility for premium tax credits.

Under the proposed regulations, entities required to report under Code section 6055 must provide the name and taxpayer identification number (TIN) of each individual enrolled in minimum essential coverage. If, after reasonable effort, an entity is unable to obtain an individual's TIN, the entity may report the individual's birthdate instead. Entities must also provide individuals with a written statement showing the information reported to the IRS. Information returns may be filed in the year following the calendar year in which the coverage was provided on Form 1095-B or another form designated by the IRS. The first returns must be filed by February 28 (March 31, if filed electronically).

Reporting Requirements for Applicable Large Employers (ALEs). Code section 6056 requires ALEs (generally, employers with 50 or more full-time employees) to provide certain information regarding the health insurance offered to its full-time employees. Employers must also report certain information to employees so that the employees may determine whether they are eligible for premium tax credits.

The proposed regulations require ALEs to file a report describing the health care coverage provided to their full-time employees, including identifying the full-time employees, the coverage offered to each full-time employee and the months for which coverage was available. ALEs will report the information on Form 1094-C, which is to be filed by February 28 (March 31, if filed electronically) of the year following the calendar year in which coverage was provided. Due to the one-year delay in implementing the employer mandate under the ACA, the proposed regulations would not take effect until January 1, 2015.