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Expert Analysis

IRS Gives Good Directions On ACA Cadillac Tax

Law360, New York (March 25, 2015, 5:36 PM EDT) -- On Feb. 23, the Internal Revenue Service released its first publication on the so-called Cadillac tax, a nondeductible 40 percent excise tax on high-cost health coverage that is scheduled to take effect in 2018. IRS Notice 2015-16 describes possible approaches for defining the coverage that is counted, determining the cost of that coverage and applying the annual dollar limits. In the notice, the IRS requests comments on the proposed approaches and also indicates that it will issue a second notice that will also be open to public comment before issuing proposed regulations....

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