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Issue Number:  2016-5

Inside This Issue

1. New on IRS.gov
2. IRS Regulations Provide Guidance for New Voluntary Certification Program; Application Process for Professional Employer Organizations Opens July 1
3. ACA Employer Webinars Now Available On Demand
4. Technical Guidance

• Pub. 5165 for processing year 2016, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters
• Form 4419 for 2016, Application for Filing Information Returns Electronically (FIRE) 
• 2016 Inst. SS-4 (PR), Instructions for Form SS-4, Application for Employer Identification Number (EIN) (Puerto Rico Version)

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The Internal Revenue Service released temporary and proposed regulations implementing a new voluntary certification program for professional employer organizations (PEOs).

The regulations, available in the Federal Register, carry out legislation enacted in late 2014 requiring the IRS to establish a voluntary certification program for these organizations. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. To become and remain certified under the new program, PEOs must meet tax status, background, experience, business location, financial reporting, bonding and other requirements described in the regulations.

The application process will open on July 1.  A revenue procedure further detailing the application process will be released in coming weeks. Subsequently, as required by law, the IRS will publish lists of certified PEOs (CPEOs) and those whose certification has been revoked or suspended.

The IRS welcomes public comment on the regulations. Find details on submitting comments in the notice of proposed rulemaking in the Federal Register. The deadline for submissions is Aug. 4, 2016.

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The following recently aired IRS Affordable Care Act employer webinars are now available for viewing on demand:

• Applicable Large Employers Information Return Requirements (IRC 6056) for Tax Year 2015
• Information Reporting by Providers of Minimum Essential Coverage (MEC) (§6055) 

PowerPoint presentations are also available to download.

These and other webinars are available through the IRS Video Portal.

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Revenue Procedure 2016-24 - a ministerial item of guidance - provides indexing adjustments for certain provisions under sections 36B and 5000A of the Internal Revenue Code.  In particular, it updates the Applicable Percentage Table in § 36B(b)(3)(A)(i) to provide the Applicable Percentage Table for 2017 that is used to calculate an individual’s premium tax credit.  This revenue procedure also updates the required contribution percentage in § 36B(c)(2)(C)(i)(II) for plan years beginning after calendar year 2016. The percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B.  Additionally, this revenue procedure cross-references the required contribution percentage under § 5000A(e)(1)(A) for plan years beginning after calendar year 2016, as determined under guidance issued by the Department of Health and Human Services.  The percentage is used to determine whether an individual is eligible for an exemption from the individual shared responsibility payment because of a lack of affordable minimum essential coverage.

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