Regulations

New fee for self-insured health plan sponsors

Real Estate Tax Talk

If you employ your spouse in your real estate business you have the option of providing him or her with tax-free employee fringe benefits, including health benefits. This can include not only health insurance that covers your spouse and the rest of the family, but a health reimbursement arrangement as well. This is a fantastic way to maximize your deductions for health care expenses. If you've already done this, congratulations. You're way ahead of the curve. However, the IRS recently issued a revised Form 720, “Quarterly Excise Tax Return,” to provide for the reporting and payment of fees imposed on specified health insurance issuers and plan sponsors of certain self-insured health plans by the Patient Protection and Affordable Care Act of 2010 (“Affordable Care Act”). The fees help fund the Patient-Centered Outcome Research Institute (“PCORI”), which is intended to assist research efforts to help patients, clinicians, purchasers and policymakers make informed ...