2019-032 - Authorizing Representation in an IRS Matter and Delegating Authority to Execute Form 2848 IRS Power of Attorney

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TML Kofth- Mi l e 1 . ",,'uIM 0 AIeJ f ,) J�°�,�I 2019 "roC [Organization's Governing Body] i; i=: Purpose of Resolution Authorizing Representation in IRS Matter and Delegating Authority to Execute Form 2848 IRS Power of Attorney This memo explains the purpose of the resolution authorizing representation in the IRS matter concerning notice of proposed penalties for the late filing of IRS Forms 1094-C and 1095-C for the 2016 and 2017 federal tax years. Background: In summary, TML IEBP was required to file forms 1094-B, 1095-B, with the IRS regarding health insurance coverage provided to Pool group employees. Forms 1094-B and 1095-B (the "'B' Forms") are required to be filed by health insurance issuers and carriers to report information to the IRS and employees regarding provision of minimum essential coverage under the Affordable Care Act. A separate 1095-B is filed for each employee with the IRS, and a copy is provided to the employee. Form 1094-B reports summary information for the issuer/carrier and transmits the Forms 1095-B to the IRS. TML IEBP has timely filed "B" Forms as an "issuer" of coverage each year since 2015, and provided copies to all Pool groups' employees. Forms 1094-C and 1095-C (the "'C' Forms") are required to be filed by employers with more than 50 full-time employees (Applicable Large Employers, or ALES) to report information to the IRS about the ALE's offer of health coverage to its employees. As with the "B" Forms, a separate 1095-C is filed for each Pool ALE Member employee with the IRS, and a copy is provided to the employee. Form 1094-C reports summary information for the ALE and transmits the Forms 1095-C to the IRS. The "C" Forms are used to determine if the employer is required to make the employer shared responsibility payment under § 4980H of A.C.A., and the eligibility of employees for a "premium tax credit." TML IEBP filed "C" Forms for 2015 for all Pool ALE Members it identified as an ALE based on the number of employees enrolled in the benefit plan. However, due to an administrative error, TML IEBP did not file the forms for tax years 2016 or 2017 until the fall of 2018. IRS Notices Several Pool ALE groups received IRS notices in August 2018 stating that the group was required to file the "C" Forms for 2016. TML filed "C" Forms for each Pool ALE group for 2016 on October 29, 2018, and for tax year 2017 on November 13, 2018. ALE groups have started receiving letters proposing to issue a penalty for failure to timely file the "C" Forms for tax year 2017. No letters proposing penalties have been received to date for tax year 2016. f o0ow u,", Fh� 1 J'�1J.�]re�1kk� 18,21 V'•CGaI I ifrford Lai �G , °,uil e 3,00 fir ,%aMln Texas 78754-51.151 Porrr �122 (E'11 2) 7'19 HOC) - (a001 82 E")385: trnth althb m Pits cxrg