The Affordable Care Act imposed a penalty on large employers (those with 50 or more full time and full-time equivalent employees) that fail to provide affordable health coverage. The IRS has ruled informally that there’s no statute of limitations on the assessment of this penalty because there’s no tax return filed to report an employer’s liability for the “employer shared responsibility payment” (the penalty). The fact that employers have filed information returns (Form 1095-C) does not change this result.
Alert: Follow coronavirus-related federal tax changes through the IRS’ Coronavirus Tax Relief center.
