06 - Authorize TML to Engage Legal Representation in IRS matterItem No. 6
TO: Mayor & City Council
FROM: Gene Anderson, Interim City Manager & Finance Director
SUBJECT: AUTHORIZING TML TO ENGAGE LEGAL REPRESENTATION ON
BEHALF OF THE CITY OF PARIS AND DELEGATING AUTHORITY TO THE CITY
MANAGER TO EXECUTE IRS FORM 2848 IRS POWER OF ATTORNEY
DATE: August 28, 2019
BACKGROUND: The City of Paris, along with numerous other cities, worked through TML to
file IRS forms 1094-C and 1095-C. TML outsourced this task to a third party. Apparently, these
forms were not timely filed with the IRS in 2016 and 2017.
STATUS OF ISSUE: TML has engaged the law firm of Mitchell, Williams, Selig, Gates, &
Woodyard, PLLC to represent TML and the affected cities. The City Council should adopt a
resolution authorizing the city manager to execute a power of attorney allowing the Mitchell firm
to represent the City of Paris in this matter.
BUDGET: No impact.
RECOMMENDATION: Motion to adopt a resolution authorizing representation in an IRS
matter and further delegating authority to the city manager to sign IRS Form 2848.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS AUTHORIZING REPRESENTATION IN IRS MATTER AND
DELEGATING AUTHORITY TO EXECUTE FORM 2848 IRS
POWER OF ATTORNEY, MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the TML Multistate Intergovernmental Employee Benefits Pool
(the "Pool") may have failed to timely file IRS Forms 1094-C and 1095-C (the "Tax
Forms") for the 2016 and 2017 federal tax years on behalf of the City of Paris, Texas,
related to the City of Paris' provision of minimum essential health coverage to its
employees; and
WHEREAS, the Pool has agreed to resolve any proposed imposition of
penalties and fines by the IRS for the late filing of the Tax Forms (the "Penalties") on
behalf of all affected members of the Pool, including the City of Paris, Texas; and
WHEREAS, the Pool has engaged the law firm of Mitchell, Williams, Selig, Gates
& Woodyard, PLLC ("Mitchell Williams") to represent the Pool and its members
before the IRS with respect to any such Penalties, and the Pool shall be solely
responsible for all communication with and payment of Mitchell Williams with regard
to such matter; and
WHEREAS, in order for Mitchell Williams and its attorneys to communicate
with the IRS regarding any Penalties proposed to be assessed against the City of Paris,
Texas, an authorized official of the City of Paris, Texas must execute a Form 2848 IRS
Power of Attorney authorizing the attorneys to represent the City of Paris, Texas
before the IRS; and
WHEREAS, the City Council of the City of Paris, Texas finds it necessary and
proper to authorize the Interim City Manager to execute a Form 2848 on behalf of the
City of Paris, Texas for such purpose;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS:
Section 1. The TML MultiState Intergovernmental Employee Benefits Pool is
hereby authorized to engage Mitchell Williams to represent the City of Paris, Texas
before the IRS with respect to resolving the proposed IRS Penalties that have been or
may in the future be asserted against the City of Paris, Texas.
Section 2. The Interim City Manager is hereby authorized to execute a Form
2848 IRS Power of Attorney, in the form attached hereto as Exhibit "A", for the
purpose of granting the attorneys listed therein the authority to represent the City of
Paris, Texas before the IRS solely with respect to any such proposed Penalties for tax
years 2016 and 2017.
PASSED AND APPROVED this 26th day of August, 2019.
Steven J. Clifford, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
August 14, 2019
Via ganderson@aristexas.gov
ATTN: Mr. Gene Anderson
City of Paris
ganderson@paristexas.gov
RE: Update on Status of TML Health's Review of IRS Notices of Penalty Proposed for 2017
Information Returns
Dear Mr. Anderson:
This letter is to provide another update on the status of our efforts to resolve the proposed IRS penalty
notices arising from an administrative error in filing the 1095-C forms on your behalf. The TML Health
Board of Trustees conducted a special meeting on Saturday, August 10, 2019. The Trustees voted to
resolve the proposed imposition of penalties and fines by the IRS for the late filing by the Pool on behalf
of the Pool and the affected Employer Members and Non -Risk Employer Members (or ASO Members)
of IRS Form 1095-C for the 2017 federal tax year and 2016 tax year, if applicable. These actions
demonstrate our commitment to you to resolve this matter and to relative penalties on your behalf, if in
fact a penalty is assessed. I have enclosed a copy of the approved resolutions for your records.
This means that TML Health will be working with tax attorneys at the law firm Mitchell, Williams,
Selig, Gates & Woodward, P.L.L.C. (Mitchell Williams) to communicate with the IRS on your behalf
to resolve the proposed IRS penalty notices relating to the late filing of the 2017 IRS Form 1095-C.
In order to facilitate a unified and timely resolution for all affected IEBP Member groups, your prompt
support in this matter is very important. We believe that the unified approach will provide the best
opportunity for the most favorable results for all affected Member organizations.
Enclosed is an IRS Power of Attorney (Form 2848) giving our attorneys the ability to communicate
directly with the IRS about the matter on behalf of your group. We ask that you complete the enclosed
Power of Attorney form even if you have not yet received a penalty notice from the IRS. Although we
will only respond to the IRS on behalf of the Member groups that have received penalty notices, we want
to have a Power of Attorney on file from each Member group so that we can assist immediately when
and if you do receive a notice.
In section 1 of the enclosed Power of Attorney Form, please type or write in your organization's name
address, taxpayer identification number (EIN), and telephone number. On page 2, section 7, please have
an authorized official within your organization sign and date the form, and either write or type in the
signor's title, printed name and the name of your organization. Once the Power of Attorney form has
been signed, please email or fax the signed form back to me.
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Please note that this Power of Attorney is limited only to discussing the penalties proposed for late filing
of Forms 1094-C and 1095-C for tax years 2016 and 2017. It does not override or revoke any other IRS
Power of Attorney you may have on file for any other matters. Further, your group will have the ability
to approve any resolution or settlement negotiated with the IRS on your behalf.
I also understand that you may need to seek approval from your group's governing body in order to
designate an authorized official within your organization to execute the enclosed Power of Attorney.
With that in mind, I have enclosed a model memo explaining the issue and purpose of the resolution,
and a model resolution to be adopted for this purpose.
The deadline to respond to the IRS for many Member groups is September 12, 2019, so your prompt
attention to this matter is very important. If you receive any correspondence from the IRS concerning
the 1095-C forms in the coming days, please send my office a copy via email to
For questions about the enclosed Form or the penalty matter in general,
please feel free to contact my office at (512) 719-8349.
Sincerely,
Leah Simon
General Counsel
Enclosures: TML Health Board Resolutions 19-05,19-06 and 19-07;
Power of Attorney Form (IRS Form 2848);
Model Memo for Consideration of Resolution Agenda Item
Model Resolution Authorizing Power of Attorney
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WHEREAS, the TML MultiState Intergovernmental Employee Benefits Pool C'Loor') is
political subdivision of the State of Texasall the powers and duties set out in Chapter4
the Texas Local Government Chapt;. , d
and its own Trust
Agreement Establishing Employ "
Benefits Poo
WHEREAS,l C'1rqatAFLee
the Board of TrusteesothePool(the"Board") must carryout a, of the duti
required4", the accomplish purpose , the Pool solelyinterest
the officials, employees and retirees of Employer Members,dependents
individuals,and fori providing benefits,e} services, a
of administering the Pool;
WHEREAS, the Board finds that it is necessary and proper to the furtherance and
oi,.ccomplishment of the primary purposeand objectives", TML MultiState
12-inployee Benefits Pool, as defined in the Trust Agreement (the "Primary Purpose") to ensure that
the Pool compliant with a, ' r to the
v.dministration and providing of benefit services to Employer Members and Non -Risk Employer
Members.
That the Board of Trustees finds and
determines .t it accomplishes the Primary
Purpose " the Pool to resolve the proposedr 4 fmes by the
IRS for the late filing by the Pool on r, Pool and the affected Employer
Members and Non-RiskEmployer i e.. of IRS Form 1095 -CR
federal.' and any other
2. That the Board of Trustees will esolve on behalf of the affected Employer
Members and Non -Risk # oyer Members the proposed imposition of penalties
for t
federalhe late filing by the Pool on behalf of the Pool and the affected Employer
Members and Non -Risk Employer Members of IRS Form 1095-C for the 2017
taxyearany ayear.
k .. k.. ',
Dated: August 10, 2019
Eddie Edwards, Chairman
Board of Trustees
TML MultiState Intergovernmental
Employee Benefits Pool
ATTEST:
L `imo Se retary to the Board of Trustees
General ounsel
TML Multistate Intergovernmental
Employee Benefits Pool
Resolution No. 19-05
TML MULTISTATE
INTERGOVERNMENTAL
EMPLOYEE BENEFITS POOL
BOARD OF TRUSTEES
RESOLUTION NO. 19-06
RESOLUTION NO. 19-06
RESOLUTION OF THE BOARD OF TRUSTEES OF THE TML
MULTISTATE INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL
DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR THE
POWER TO NEGOTIATE AND ENGAGE IN SETTLEMENT
DISCUSSSIONS WITH THE INTERNAL REVENUE SERVICE
WHEREAS, the TML Multistate Intergovernmental Employee Benefits Pool ("Pool") is a
political subdivision of the State of Texas with all the powers and duties set out in Chapter 172 of
the Texas Local Government Code, Chapter 791 of the Government Code, the Texas Trust Act,
and its own Trust Agreement Establishing the TML MultiState Intergovernmental Employee
Benefits Pool ("Trust Agreement' };
WHEREAS, the Board of Trustees of the Pool (the "Board') must carry out all of the duties
required under the Trust Agreement to accomplish the purpose of the Pool solely in the interest of
the officials, employees and retirees of Employer Members, and the dependents of such
individuals, and for the exclusive purpose of providing benefits, as well as related services, and
performing operations in furtherance thereof, to such persons, and defraying reasonable expenses
of administering the Pool; and;
WHEREAS, the Executive Director is the chief executive and administrative officer of the
Pool and is charged with the responsibility of overseeing the day-to-day operations of the Pool,
implementing and administering the decisions of the Board, supervising the staff of the Pool, and
fulfilling any other obligations devolving to the Executive Director by resolution of the Board or
as imposed by the Trust Agreement; and
WHEREAS, the Board finds that it is necessary and proper to the furtherance and
accomplishment of the primary purpose and objectives of the TML MultiState Intergovernmental
Employee Benefits Pool, as defined in the Trust Agreement (the "Primary Purpose") to delegate
to the Executive Director the power to negotiate and engage in settlement discussions with the IRS
to resolve the proposed imposition of penalties and fines by the IRS for the late filing by the Pool
on behalf of the Pool and the affected Employer Members and Non -Risk Employer Members of
IRS Form 1095-C for the 2017 federal tax year and any other tax year.
NOW, THEREFORE, it is hereby:
RESOLVED,
1. That the Board of Trustees finds and determines that it accomplishes the Primary
Purpose of the Pool to delegate to the Executive Director the power to negotiate
and engage in settlement discussions with the IRS to resolve the proposed
imposition of penalties and fines by the IRS for the late filing by the Pool on behalf
Resolution No. 19-06
of the Pool and the affected Employer Members and Non -Risk Employer Members
of IRS Form 1095-C for the 2017 federal tax year and any other tax year.
2. That the Board of Trustees delegates to the Executive Director the power to
negotiate and engage in settlement discussions with the IRS relating to resolve the
proposed imposition of penalties and fines by the IRS for the late filing by the Pool
on behalf of the Pool and the affected Employer Members and Non -Risk Employer
Members of IRS Form 1095-C for the 2017 federal tax year and any other tax year.
Dated: August 10, 2019
Eddie Edwards, Chairman
Board of Trustees
TML MuitiState Intergovernmental
Employee Benefits Pool
ATTEST:
Le imoa, Secretary to the Board of Trustees
=neral Counsel
TML Multistate Intergovernmental
Employee Benefits Pool
Resolution No. 19-06
TML MULTISTATE
INTERGOVERNMENTAL
EMPLOYEE BENEFITS POOL
BOARD OF TRUSTEES
RESOLUTION NO. 19-07
RESOLUTION NO. 19-07
RESOLUTION OF THE BOARD OF TRUSTEES OF THE TML
MULTISTATE INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL
DELEGATING AUTHORITY TO THE EXECUTIVE COMMITTEE THE
POWER TO APPROVE SETTLEMENT DISPOSITIONS OF ACCOUNTS
WITH THE INTERNAL REVENUE SERVICE
WHEREAS, the TML MultiState Intergovernmental Employee Benefits Pool ("Pool") is a
political subdivision of the State of Texas with all the powers and duties set out in Chapter 172 of
the Texas Local Government Code, Chapter 791 of the Government Code, the Texas Trust Act,
and its own Trust Agreement Establishing the TML MultiState Intergovernmental Employee
Benefits Pool 0Trust Agreement")•
WHEREAS, the Board of Trustees ofthe Pool (the "Board") must carry out all of the duties
required under the Trust Agreement to accomplish the purpose of the Pool solely in the interest of
the officials, employees and retirees of Employer Members, and the dependents of such
individuals, and for the exclusive purpose of providing benefits, as well as related services, and
performing operations in furtherance thereof, to such persons, and defraying reasonable expenses
of administering the Pool; and;
WHEREAS, the Executive Committee by authority granted under the Trust Agreement
studies and recommends to the full Board all matters referred to it by the Board when the Board is
not in session, and has such other authority as is delegated to it by the Board; and
WHEREAS, the Board finds that it is necessary and proper to the furtherance and
accomplishment of the primary purpose and objectives of the TML MultiState Intergovernmental
Employee Benefits Pool, as defined in the Trust Agreement (the "Primary Purpose") to delegate
to the Executive Committee the power to approve settlement dispositions of accounts with the IRS
to resolve the proposed imposition of penalties and fines by the IRS for the late filing by the Pool
on behalf of the Pool and the affected Employer Members and Non -Risk Employer Members of
IRS Form 1095-C for the 2017 federal tax year and any other tax year.
NOW, THEREFORE, it is hereby:
RESOLVED,
I . That the Board of Trustees finds and determines that it accomplishes the Primary
Purpose of the Pool to delegate to the Executive Committee the power to approve
settlement dispositions of accounts with the IRS to resolve the proposed imposition
of penalties and fines by the IRS for the late filing by the Pool on behalf of the Pool
and the affected Employer Members and Non -Risk Employer Members of IRS
Form 1095-C for the 2017 federal tax year and any other tax year.
Resolution No. 19-07
2. That the Board of Trustees delegates to the Executive Committee the power to
approve settlement dispositions of accounts with the IRS relating to resolve the
proposed imposition of penalties and fines by the IRS for the late filing by the fool
on behalf of the Pool and the affected Employer Members and Non -Risk Employer
Members of IRS Form 1095-C for the 2017 federal tax year and any other tax year.
Dated: August 10, 2019
Eddie Edwards, Chairman
Board of Trustees
TML MultiState Intergovernmental
Employee Benefits Pool
ATTEST:
s i Simon, Secietar to the Board of Trustees
ees
General Counsel
TML MultiState Intergovernmental
Employee Benefits Pool
Resolution No. 19-07
Forrn2848 Power of Attorney
(Rev. January 2018) and Declaration of Representative
Department of the Treasury
Internal Revenue Service ► Go to wwwJrs.gov/Form2848 for instructions and the latest information.
Power of Attorney
Caution: A separate Form 2848 must be completed for each taxpayer. Form 2848 will not be honored
for any purpose other than representation before the IRS.
1 Taxpayer information. Taxpayer must sign and date this form on page 2, line 7.
Taxpayer name and address I Taxpayer identification number(s)
hereby appoints the following representative(s) as attorneys) -in -fact:
2 Representative(s) must sign and date this form on page 2, Part II.
Name and address CAF No. ------
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Check if to be sent copies of notices and communications ❑✓ Check if new: Address ❑✓
OMB No. 1545-0150
For IRS Use Only
Received by:
Name
Telephone
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..............
Date / /
number (if applicable)
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Check if to be sent copies of notices and communications 13
Check if new: Address ❑ Telephone No. ❑ Fax No. El._ _ ..._..___...
Name and address
CAF No.
PTIN -----------------------------------------------------
Telephone No.
Fax No.
(Note: IRS sends notices and communications to only two representatives.)
Check if new: Address ❑ Telephone No. ❑ Fax No. ❑
Name and address
CAF No.
PTIN----------- - - -- -
Telephone No.
Fax No.
Note: IRS sends notices and communications to only two representatives.)
Check if new: Address ❑ Telephone No. ❑ Fax No. ❑
to represent the taxpayer before the Internal Revenue Service and perform the following acts:
3 Acts authorized (you are required to complete this line 3). With the exception of the acts described in line 5b, I authorize my representative(s) to receive and
inspect my confidential tax information and to perform acts that I can perform with respect to the tax matters described below. For example, my representative(s)
shall have the authority to sign any agreements, consents, or similar documents (see instructions for line 5a for authorizing a representative to sign a return).
Description of Matter (Income, Employment, Payroll, Excise, Estate, Gift, Whistleblower,
Tax Form Number
Year(s) or Periods) (if applicable)
Practitioner Discipline, PLR, FOIA, Civil Penalty, Sec. 5000A Shared Responsibility
1040, 941, 720, etc. if applicable)
( ) ( pp )
(see instructions)
Payment, Sec. 4980H Shared Responsibility Payment, etc.) (see instructions)
2016 ?M
4 Specific use not recorded on Centralized Authorization File (CAF). If the power of attorney is for a specific use not recorded on CAF,
check this box. See the instructions for Line 4. Specific Use Not Recorded on CAF _ ► El
^
5a Additional acts authorized. In addition to the acts listed on line 3 above, I authorize my representative(s) to perform the following acts (see
instructions for line 5a for more information): ❑ Access my IRS records via an Intermediate Service Provider;
❑ Authorize disclosure to third parties; ❑ Substitute or add representative(s); ❑ Sign a return;
❑ Other acts authorized:
For Privacy Act and Paperwork Reduction Act Notice, see the instructions. Cat. No. 11980J Form 2848 (Rev.1-2018)
Form 2848 (Rev. 1-2018) Page 2
b Specific acts not authorized. My representative(s) is (are) not authorized to endorse or otherwise negotiate any check (including directing or
accepting payment by any means, electronic or otherwise, into an account owned or controlled by the representative(s) or any firm or other
entity with whom the representative(s) is (are) associated) issued by the government in respect of a federal tax liability.
List any other specific deletions to the acts otherwise authorized in this power of attorney (see instructions for line 5b):
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
6 Retention/revocation of prior power(s) of attorney. The filing of this power of attorney automatically revokes all earlier power(s) of
attorney on file with the Internal Revenue Service for the same matters and years or periods covered by this document. If you do not want
to revoke a prior power of attorney, check here . . . . . . . . . . . . . . . . . . . . . . . . . . ► ❑
YOU MUST ATTACH A COPY OF ANY POWER OF ATTORNEY YOU WANT TO REMAIN IN EFFECT.
7 Signature of taxpayer. If a tax matter concerns a year in which a joint return was filed, each spouse must file a separate power of attorney
even if they are appointing the same representative(s). If signed by a corporate officer, partner, guardian, tax matters partner, partnership
representative, executor, receiver, administrator, or trustee on behalf of the taxpayer, I certify that I have the legal authority to execute this form
on behalf of the taxpayer.
* IF NOT COMPLETED, SIGNED, AND DATED, THE IRS WILL RETURN THIS POWER OF ATTORNEY TO THE TAXPAYER.
Signature
Date
Title (if applicable)
Print Name Print name of taxpayer from line 1 if other than individual
Declaration of Representative
Under penalties of perjury, by my signature below I declare that:
• I am not currently suspended or disbarred from practice, or ineligible for practice, before the Internal Revenue Service;
• I am subject to regulations contained in Circular 230 (31 CFR, Subtitle A, Part 10), as amended, governing practice before the Internal Revenue Service;
• I am authorized to represent the taxpayer identified in Part I for the matter(s) specified there; and
• I am one of the following:
a Attorney—a member in good standing of the bar of the highest court of the jurisdiction shown below.
b Certified Public Accountant—a holder of an active license to practice as a certified public accountant in the jurisdiction shown below.
c Enrolled Agent—enrolled as an agent by the Internal Revenue Service per the requirements of Circular 230.
d Off icer—a bona fide officer of the taxpayer organization.
e Full -Time Employee—a full-time employee of the taxpayer.
f Family Member—a member of the taxpayer's immediate family (spouse, parent, child, grandparent, grandchild, step-parent, step -child, brother, or sister).
g Enrolled Actuary—enrolled as an actuary by the Joint Board for the Enrollment of Actuaries under 29 U.S.C. 1242 (the authority to practice before
the Internal Revenue Service is limited by section 10.3(d) of Circular 230).
h Unenrolled Return Preparer—Authority to practice before the IRS is limited. An unenrolled return preparer may represent, provided the preparer (1)
prepared and signed the return or claim for refund (or prepared if there is no signature space on the form); (2) was eligible to sign the return or
claim for refund; (3) has a valid PTIN; and (4) possesses the required Annual Filing Season Program Record of Completion(s). See Special Rules
and Requirements for Unenrolled Return Preparers in the instructions for additional information.
k Qualifying Student—receives permission to represent taxpayers before the IRS by virtue of his/her status as a law, business, or accounting student
working in an LITC or STCP. See instructions for Part II for additional information and requirements.
r Enrolled Retirement Plan Agent—enrolled as a retirement plan agent under the requirements of Circular 230 (the authority to practice before the
Internal Revenue Service is limited by section 10.3(e)).
IF THIS DECLARATION OF REPRESENTATIVE IS NOT COMPLETED, SIGNED, AND DATED, THE IRS WILL RETURN THE
POWER OF ATTORNEY. REPRESENTATIVES MUST SIGN IN THE ORDER LISTED IN PART I, LINE 2.
Note: For designations d -f, enter your title, position, or relationship to the taxpayer in the "Licensing jurisdiction" column.
Designation— Licensing jurisdiction
Insert above (State) or other
letter (a -r). licensing authority
(if applicable).
AIIIR
IfR
Bar, license, certification,
registration, or enrollment
number (if applicable).
Signature
Date
Form 2848 (Rev. 1-2018)
A110 D I (! M (1)"I"j,111 ri chu .Y iiia- ge n d w .Illll :iiiiiResolutJOU
BATF: , 2019
TO: [Organization's Governing Body]
RE: 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.
Backrogund;
In summary, TML IEBP was required to file forms 1094-13, 1095-13, 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.
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Action Needed from the Governing Body:
TML Multistate IEBP (the "Pool") may have failed to timely file IRS Forms 1094-C and 1095-C (the "Tax Forms")
for the 2016 and 2017 federal tax years on behalf of [organization], related to [organization's] provision of
minimum essential health coverage to its employees. The Board of Trustees of the Pool have agreed to resolve
any proposed imposition of penalties and fines by the IRS for the late filing of the Tax Forms (the "Penalties") on
behalf of all affected members of the Pool, including [organization]. The Pool has engaged the law firm of
Mitchell, Williams, Selig, Gates & Woodyard, PLLC ("Mitchell Williams") to represent the Pool and its members
before the IRS with respect to any such Penalties, and the Pool shall be solely responsible for all communication
with and payment of Mitchell Williams with regard to such matter. In order for Mitchell Williams and its
attorneys to communicate with the IRS regarding any Penalties proposed to be assessed against [organization],
an authorized official of [organization] must execute a Form 2848 IRS Power of Attorney authorizing the
attorneys to represent [organization] before the IRS.
The proposed resolution authorizes [your organization] to:
1. engage Mitchell Williams to represent [organization] before the IRS with respect to resolving the
proposed IRS Penalties that have been or may in the future be asserted against [organization]; and
2. delegate an authorized [organization official] to execute a Form 2848 IRS Power of Attorney for the
purpose of granting the attorneys listed therein the authority to represent [organization] before the
IRS solely with respect any such proposed Penalties for tax years 2016 and 2017.
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MODEL RESOLUTION
RESOLUTION NO.
RESOLUTION OF THE [GOVERNING BODY] OF [ORGANIZATION]
AUTHORIZING REPRESENTATION IN IRS MATTER AND
DELEGATING AUTHORITY TO EXECUTE FORM 2848 IRS POWER OF
ATTORNEY
WHEREAS, the TML Multistate Intergovernmental Employee Benefits Pool (the "Pool")
may have failed to timely file IRS Forms 1094-C and 1095-C (the "Tax Forms") for the 2016 and
2017 federal tax years on behalf of [organization], related to [organization's] provision of
minimum essential health coverage to its employees; and
WHEREAS, the Pool has agreed to resolve any proposed imposition of penalties and fines
by the IRS for the late filing of the Tax Forms (the "Penalties") on behalf of all affected members
of the Pool, including [organization]; and
WHEREAS, the Pool has engaged the law firm of Mitchell, Williams, Selig, Gates &
Woodyard, PLLC ("Mitchell Williams") to represent the Pool and its members before the IRS with
respect to any such Penalties, and the Pool shall be solely responsible for all communication with
and payment of Mitchell Williams with regard to such matter; and
WHEREAS, in order for Mitchell Williams and its attorneys to communicate with the IRS
regarding any Penalties proposed to be assessed against [organization], an authorized official of
[organization] must execute a Form 2848 IRS Power of Attorney authorizing the attorneys to
represent [organization] before the IRS; and
WHEREAS, [governing body] finds it necessary and proper to authorize [organization
official] to execute a Form 2848 on behalf of [organization] for such purpose;
NOW THEREFORE, IT IS HEREBY RESOLVED:
1. [Organization] is hereby authorized to engage Mitchell Williams to represent
[organization] before the IRS with respect to resolving the proposed IRS Penalties that have been
or may in the future be asserted against [organization].
2. [organization official] is hereby authorized to execute a Form 2848 IRS Power of
Attorney, in the form attached hereto as Exhibit A, for the purpose of granting the attorneys listed
therein the authority to represent [organization] before the IRS solely with respect any such
proposed Penalties for tax years 2016 and 2017.
PASSED AND APPROVED this ® day of , 2019
ATTEST:
APPROVED:
Secretary or Clerk Mayor or Board Chair