Total Articles: 10
Employee Benefits Plans Alert: Compliance Deadlines Loom for Fee and Other Disclosures
Employers that sponsor participant-directed individual account plans, such as 401(k) plans, must comply with two new sets of rules governing fee and other disclosures intended to ensure that plan participants can make informed investment decisions. It is imperative that plan sponsors understand and comply with these new disclosure requirements. Although the compliance deadlines have been extended (see http://www.dol.gov/ebsa/newsroom/fs408b2finalreg.html), plan sponsors should take advantage of this extension to ensure that they are in compliance with the new rules.
IRS Announces Pilot Program for Large Companies and Their Retirement Plans
Last week, at a Joint Meeting of the IRS's top officials with ERISA/tax attorneys and accountants from across the country, the IRS announced a pilot program that targets companies with at least 2,500 participants. Colleen Patton, the IRS's Area Manager for the Pacific Coast, says the pilot program has rolled out in her region, and the IRS expects to expand the program across the nation's remaining four geographic areas (Northeast, Mid-Atlantic, Great Lakes, and Gulf Coast).
Obamacare By The Numbers
Two new studies just out highlight the extraordinary problems now facing the United States health system, and some of the consequences that could befall the country if critical parts of health reform are stripped away.
Agencies Outline Plans for Issuing Rules under Affordable Care Act
On January 20, 2012 various federal agencies released their regulatory agendas for the coming year. These documents describe which rules agencies such as the U.S. Department of Health and Human Services (HHS) and the Department of Labor’s Employee Benefits Security Administration (EBSA) intend to develop and/or issue in proposed and final form within the next 12 months. The agencies also released information on longer-term regulatory actions. A number of these regulatory efforts address changes made by the Affordable Care Act.
CMS Publishes Proposed Rule and Requests for Comment on "Sunshine Provisions" of the Patient Protection and Affordable Care Act ("PPACA")
On December 19, 2011, the Centers for Medicare and Medicaid ("CMS") published a proposed rule implementing the "sunshine provisions" in Section 6002 of the Patient Protection and Affordable Care Act ("PPACA"). These provisions require (i) applicable manufacturers to report annually to CMS certain payments or transfers of value provided to physicians or teaching hospitals and (ii) applicable manufacturers and applicable GPOs to report annually certain physician ownership and investment interests. The primary effect of the sunshine provisions is to require many life sciences companies to track and make known most of their financial arrangements with physicians. The proposed rule establishes procedures for data collection and reporting to CMS and for publishing by CMS. CMS will publish a final rule in the months ahead, and comments on the proposed rule are due on February 17, 2011. Thus, the rule is subject to change, particularly in those areas in which CMS is seeking comments, although persons may submit comments on any aspect of the proposed rule.
Department of Health and Human Services Commences HIPAA Pilot Audit Program
Among other things, 2012 will be the year of the Department of Health and Human Services ("HHS") Office of Civil Rights ("OCR") pilot audit program to assess compliance with the Health Insurance Portability and Accountability Act ("HIPAA") Privacy and Security Rules and Breach Notification standards. The American Recovery and Reinvestment Act of 2009, in Section 13411 of the HITECH Act, required that HHS conduct periodic audits to monitor and ensure compliance with HIPAA. OCR will implement this requirement through a pilot program of 150 audits from November 2011 through December 2012, including an initial wave of 20 audits that will inform how the remaining audits will be conducted. OCR has established a HIPAA Audit Program website.
IRS Mileage Rate Remains Unchanged
The Internal Revenue Service issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes.
Reminder Alert: Incentive Stock Options and Employee Stock Purchase Plans—IRS Information Statements and Information Returns under Section 6039
This Alert serves as a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to incentive stock option exercises and transfers of stock acquired under employee stock purchase plans occurring during 2011.
The IRS Reduces Its Program for Requesting Tax Status Determination Letters
On January 3, 2012, the Internal Revenue Service (IRS) issued Revenue Procedure 2012‑6, which formally changes and eliminates certain features of its determination letter program for qualified retirement plans. According to an earlier announcement of these changes (in IRS Announcement 2011-82), the IRS concluded that the features being eliminated are “of limited utility to plan sponsors in comparison with the burdens they impose.” However, the changes will significantly restrict the determination letter service on which plan sponsors could previously rely for establishing plan qualification.
IRS Issues Interim Guidance on Health Plan Cost Reporting Requirement
Executive Summary: The IRS has issued Notice 2012-9, which restates and amends its previously issued interim guidance (Notice 2011-28) on the requirement that employers report information regarding the cost of employer-sponsored group health plan coverage.
