Health Care Reform Penalties: IRS Form 8928 for Excise Taxes for Health Reform & Other Health Plan ViolationsTuesday, February 21st, 2012
Sections 4980B, 4980D, 4980E, and 4980G of the Internal Revenue Code impose excise taxes for various failures of health care coverage requirements. For example, §4980B excise taxes apply to COBRA failures, and §4980D excise taxes apply for failure to comply with Code Chapter 100 group health plan requirements. Excise tax penalties for violations of COBRA, HIPAA, and other rules have existed for many years. Several new health reform rule violations also require reporting and payment of excise taxes. Employers and plan sponsors must use Form 8928 (Sept. 2011) to report excise taxes due for failures to meet certain requirements of the Public Health Services Act, COBRA, HIPAA, MSA, or HSA contributions. Form 8928 includes the excise taxes under Code § 4980D created by PPACA.