Interim guidance has recently been released by the IRS regarding the Affordable Care Act’s application to expatriate health plans. Under previous guidance, certain expatriate health plans were exempt from some ACA provisions, but a law enacted in December 2014 codified an exemption from most ACA requirements to qualifying expatriate plans issued or renewed on or after July 1, 2015. The July 1 date has passed without interpretive guidance, therefore the recent IRS notice allows for a “reasonable good faith interpretation” of the rules until further guidance is released.

Important Forms

Forms 1094 and 1095, which report health coverage for employees, will be due in early 2016. Regardless of whether the coverage is provided through an expatriate health plan, providers of minimum essential coverage and applicable large employers must file these forms according to IRS Notice 2015-43.

Sponsors of expatriate health plans are able to submit comments on the new guidance which are due by October 19, 2015. For more details on the guidance read our article, “IRS Issues Interim Guidance for Expatriate Health Plans Regarding the ACA”.

Questions? Contact any member of our Global Tax Services Practice.