Headlines about "Reporting requirements (to gov't agencies)"
Gathered from the web by the editors at BenefitsLink.com.
[Official Guidance] Text of IRS Notice 2009-93 Allowing Various Information Statements to Use a Truncated Social Secuity Number (PDF)
5 pages. Identity theft is becoming such a large problem that the IRS is allowing the use of truncated (partial) Social Security Numbers on the copies of various statements that go to retirement plan and IRA participants for 2009 and 2010. Paper payee statements for forms in the 1098, 1099 and 5498 series for 2009 and 2010 are eligible for the program. (Internal Revenue Service)
IRS Pilot Program to Allow Truncated Social Security Numbers on Information Returns
Excerpt: "The IRS on Thursday announced a pilot program aimed at deterring identity theft (Notice 2009-93). Under the program, filers of certain paper information returns will be allowed to truncate the payee's Social Security number on the payee statement. The change affects statements for 2009 and 2010. Only paper payee statements for forms in the 1098, 1099 and 5498 series are eligible for the program. Filers must meet certain requirements, spelled out in the notice, but if they do, they will be treated as having met the various IRS and Treasury requirements that a payee's Social Security or taxpayer identification number be included on the statement." (American Institute of Certified Public Accountants)
[Guidance Overview] Year End Update Regarding COBRA Subsidy
Excerpt: "First, Employers are not required to issue any information reporting documents (Forms W-2 or 1099) to involuntarily terminated workers to report the amount of the COBRA subsidy. Employers claiming the credit must, however, maintain documentation to support the credit claimed. Second, Employers must claim the COBRA subsidy using Form 941 and must file such claims on a Form 941 filed for a quarter in the year in which the subsidy was provided to the assistance-eligible individual." (Miller & Chevalier Chartered)
[Guidance Overview] Section 409A Reporting Required This Year for Plan Document Violations, Including Outstanding Discounted Options
Excerpt: "We expect there to continue to be very little code Z reporting in 2009 due, in part, to the IRS's correction program in Notice 2008-113 for operational violations. However, one type of Code section 409A income that will need to be reported this year is the section 409A income from any outstanding discounted options. While most discounted options were corrected or exercised during transition, there may still be some outstanding. The spread on any such options outstanding as of the end of 2009 will need to be reported as code Z income. This will require a careful review of Notice 2008-113, as well as the more detailed guidance in the proposed regulations, and consideration of whether and how the employer will obtain the associated withholding taxes in connection with the Code section 409A income." (Miller & Chevalier Chartered)
[Guidance Overview] IRS's 2009 Version of Form 2106 for Employees to Report Deductible Business Expenses
Excerpt: "EBIA Comment: The accountable plan rules allow employees to avoid tax on business expense reimbursements if three principal requirements are met: the expenses have a business connection, they are adequately substantiated, and any excess reimbursements are returned. If accountable plan reimbursements do not fully cover an employee's expenses, the employee may use Form 2106 to take a deduction for the unreimbursed expenses. Expenses may not be deducted, however, unless the employee maintains adequate records to substantiate them. Options like the standard mileage rate and standard meal allowances . . . can significantly simplify those requirements." (Employee Benefits Institute of America)
[Guidance Overview] Upcoming Compliance Deadlines for 403(b) Plans (PDF)
2 pages. Excerpt: "This bulletin is a brief reminder and overview of important new requirements for 2009 for 403(b) plans and certain applicable deadlines for a plan operating on a calendar year. Note that different effective dates may apply to certain types of plans and special exceptions apply to plans covering collectively bargained employees or ministers and to governmental and church plans." (Thompson Hine LLP)
[Guidance Overview] IRS's 2009 Form 2441 and Instructions
Excerpt: "EBIA Comment: DCAP participants must file Form 2441 with their federal income tax returns to support the income exclusion for DCAP reimbursements. The expenses that can be used to calculate the DCTC for the tax year are limited to $3,000 for one qualifying individual and $6,000 for two or more; however, these limits are reduced by the amount of any DCAP reimbursements for the same tax year. Employees who exclude $5,000 of DCAP reimbursements for 2009 (the maximum exclusion for married taxpayers filing jointly) can still take a partial DCTC based on up to $1,000 of their 2009 dependent care expenses over $5,000 if they have two or more qualifying individuals and meet other DCTC requirements." (Employee Benefits Institute of America)
[Guidance Overview] 2008 Form 5500 Information on Defined Benefit Pension Plans Must Be Posted on Company Intranet
Excerpt: "Employers with defined benefit pension plans that have recently filed a 2008 Form 5500 should address the [disclosure] issues immediately to determine if the posting obligation applies to them, and if so, how to best comply with this new disclosure obligation. At a minimum, employers with an intranet site must make the required information available on the site as soon as possible in order to be in compliance." (Pillsbury Winthrop Shaw Pittman LLP)
[Guidance Overview] IRS's Final Regulations on Return and Information Statement Requirements for Stock Transfers
Excerpt: "The Internal Revenue Service (IRS) has issued final regulations relating to the return and information statement requirements under section 6039 of the Internal Revenue Code (Code). These regulations reflect changes to section 6039 made by section 403 of the Tax Relief and Health Care Act of 2006. These regulations affect corporations that issue statutory stock options and provide guidance to assist corporations in complying with the return and information statement requirements under section 6039." (International Foundation of Employee Benefit Plans)
CalPERS Board Votes to Tighten Disclosure Rules for Middlemen
Excerpt: "The beleaguered board of the California Public Employees' Retirement System tightened rules requiring outside investment managers to disclose information about the sales intermediaries who help them do business with the $200-billion pension fund. Today's unanimous vote comes as CalPERS tries to contain growing controversy over the huge fees paid to the middlemen, so-called placement agents. . . . The new CalPERS policy would expands on a disclosure plan created in May that required fund managers to detail whether they used placement agents, the fees paid to them and their contractual relations. Today's action would make fund managers list all campaign contributions or gifts made to board members by placement agents, putting CalPERS rules in line with a new state law that applies to all government worker pension funds. At the same time, the 13-member board, meeting as the Investment Committee, rejected a proposal that external fund managers be hit with big monetary penalties if they fail to fully disclose the existence or details of their dealings with placement agents." (Los Angeles Times)
[Guidance Overview] 2010 Retirement Plan Regulatory Limits Poster and DC Compliance Calendar
Excerpt: "This poster, compliments of Vanguard Strategic Retirement Consulting (SRC), is a convenient way to remind you of important regulatory limits and dates for retirement plans. Note that there are no increases in regulatory limits for 2010. SRC also has created a calendar that lists recurring compliance and notice requirements for qualified defined contribution plans. You'll want to keep these valuable reference tools on hand in the upcoming year." (The Vanguard Group, Inc.)
[Guidance Overview] EFAST2 PIN for Form 5500 Electronic Filing Is Plan Administrator's Signature and Is Not To Be Shared
Excerpt: "EBIA Comment: This new FAQ highlights one of the many details that ERISA plan administrators, TPAs, and other Form 5500 preparers will need to understand as they get ready to file Form 5500s electronically under EFAST2. And, as the DOL notes, some filers will need to adjust their practices in order to comply. Although EFAST2 electronic credentials cannot yet be obtained (the system is expected to be up and running in January 2010), the DOL has been making an effort to provide information and resources on its website about the upcoming requirements." (Employee Benefits Institute of America)
SEC Says No More Lenience on Pay Disclosure
Excerpt: "After three years of reviewing companies' pay disclosures, the Securities and Exchange Commission appears to be running out of patience. Since late 2006, when the SEC revamped its guidelines for disclosing information on the compensation of top executives, the regulator has been sending out comment letters to companies whose disclosures they consider insufficient. These companies have been asked to do a better job next time or to provide additional information in a response letter." (CFO.com)
[Guidance Overview] The DOL's New FAQ on Credentials for EFAST2
Excerpt: "To eliminate any doubt as to its position regarding sharing filing signer credentials, the Department of Labor (DOL) added a new FAQ to the series of EFAST2 FAQs it issued in late August . . . . The new FAQ followed closely on the heels of instructions the DOL provided to third party software developers in which they reminded software developers of their obligation to protect the integrity and privacy of the electronic signatures." (SunGard Relius)
[Guidance Overview] DOL's Supplemental FAQs about 2009 Form 5500 Schedule C Fee Disclosure Rules
Excerpt: "This new guidance takes the form of additional answers to frequently asked questions (FAQs), which supplement both the instructions to Schedule C and a set of FAQs released by the DOL in July 2008 (the 2008 FAQs). In general, the new FAQs clarify a number of technical issues and provide additional support for answers given in the 2008 FAQs." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] Form 5500 E-Signature PINs May Not Be Shared with Preparers
Excerpt: "The DOL has clarified that 5500 filing signers (plan administrators) may not share their EFAST2 PIN with 5500 preparers and that no formalized hardship process will be established for EFAST 2 signers without access to the internet." (Fort William LLC)
[Guidance Overview] DOL's 'Q&A' Guidance on Reporting Service Provider Compensation on Annual Returns (PDF)
4 pages. Excerpt: "The reporting requirement applies both to 'direct compensation' paid by a plan and indirect compensation' that is paid by sources other than the plan or plan sponsor: (i) for services rendered to the plan or (ii) because of the provider's position with the plan. Examples of reportable indirect compensation include brokerage commissions, amounts charged to investment funds for plan recordkeeping services and fees paid by investment funds to investment managers." (Drinker Biddle Reath LLP)
Specific Corporate Compliance Challenges by Practice Area: ERISA
Excerpt: "[The chapter] provides a general overview of the Employee Retirement Income Security Act of 1974 ('ERISA') and discusses best practices for fiduciary compliance, ERISA litigation and risk management, and ERISA reporting and disclosure requirements." (Corporate Compliance Practice Guide: The Next Generation via Seyfarth Shaw LLP)
[Guidance Overview] Be Careful With Severance Plans; ERISA Reporting and Disclosure Rules Can Apply
Excerpt: "While most employers are well aware of ERISA's application to retirement plans and group health plans, many are surprised to learn that some severance arrangements are considered 'welfare pans' under ERISA and, are therefore, subject to ERISA's reporting and disclosure requirements, as well as the rules for processing and determining claims. Because not every severance arrangement is covered by ERISA, many employers overlook its potential application when they are implementing or designing a severance plan." (Fisher & Phillips)
[Guidance Overview] New Guidance on 2009 Form 5500 Schedule C Compensation Reporting
Excerpt: "The recent Supplemental FAQs elaborate on . . . 2009 transitional relief and make clear that the DOL will not impose penalties or reject the Form 5500 filing if, in addition to providing the statement, the service provider supplies to the plan administrator the compensation information it was able to collect. DOL also expects the plan administrator to discuss with such service providers the steps they are taking to be able to provide the necessary information in the future." (Deloitte)
[Guidance Overview] PBGC Issues October 2009 Spot Rates for Variable Premium
Excerpt: "The PBGC has also issued the spot segment rates for determining the variable rate premium amount for premium years commencing in October 2009. The spot first, second, and third segment rates for determining the variable rate premium amount for premium payment years commencing in October 2009 are 2.73%, 5.63% and 6.07%." (Wolters Kluwer Law & Business)
[Guidance Overview] Many Health and Welfare Plans to Remain Exempt from Filing New Schedule C of Form 5500
Excerpt: "While health and welfare plans funded through a trust will have to file Schedule C, plans exempt under existing guidance and regulations can continue to omit this form." (Mercer)
[Guidance Overview] DOL Issues Additional FAQs on Schedule C for 2009 Form 5500
Excerpt: "Generally, both pension plans and those welfare plans that are required to file Form 5500 must include Schedule C to report compensation received by plan service providers. Schedule C will not be required for a welfare plan, however, unless the plan has a trust or should have a trust because Technical Release 92-01 does not apply." (Employee Benefits Institute of America)
[Guidance Overview] New Treasury Regulations Require Group Health Plans to Self-Report Excise Tax Liability
Excerpt: "Beginning January 1, 2010, plan sponsors (plan administrators for multiemployer plans) will need to self-report excise tax liabilities for failure to meet certain health plan requirements, including requirements under: * COBRA; * HIPAA's portability and nondiscrimination rules; * Newborns' and Mothers' Health Protection Act; * Mental Health Parity and Addiction Equity Act; * Health savings account comparability provisions; * Michelle's Law; * Genetic Information Nondiscrimination Act (GINA)" (Ballard Spahr)
More 409A Relief Coming?
Excerpt: "A hot new rumor in the world of executive compensation professionals is that the IRS will be announcing a 'one last chance to fix your documents for 409A' program in the very near future (okay, so we tend to get excited by little things). IRS Senior Counsel Stephen Tackney made the announcement at an ABA meeting. Apparently the document correction program would function like the operation failure correction program in IRS Notice 2008-113. That is, plan sponsors would have to self-correct the errors and bear any costs associated with the correction. However, Mr. Tackney also suggested the plan sponsors must attach information about their corrections to their tax returns for the year and affected participants must attach the same information to their personal returns." (Michael Melbinger via Winston & Strawn LLP)
[Guidance Overview] Warning to Employers: If Your Health Risk Assessment Violates GINA, You May Have to Tell the IRS (and Pay Excise Taxes)
Excerpt: "[T]he new self-reporting requirement is particularly problematic at this time with respect to the recently issued guidance under GINA because a failure to comply with the new GINA regulations will cause the employer to have to self-report the violation and pay the excise tax. There is already an open question of whether a group health plan that collected genetic information (e.g., family histories) in a health risk assessment prior to the GINA rules becoming effective is violating GINA by providing a reward in 2010. The conservative answer is that providing a reward is a violation, although we are hopeful for transition guidance that says otherwise. Now, however, the transition issue is made more difficult by the self-reporting requirement. If providing a reward in 2010 is a violation of GINA, and if a group health plan provides the reward, the employer will have to self-report the violation and pay the excise tax. In addition, if it is determined that the employer knew of the new regulations and intentionally violated the regulations by providing a reward, the amount of the tax could be unlimited." (Jones Day)
[Guidance Overview] Deferred Compensation Timing Rules, Rather Than Subchapter L, Govern Insurance Company's Deduction for Retiree Medical Benefits (PDF)
1 page. Excerpt: "In a Technical Advice Memorandum (TAM 200939019 (June 10, 2009)), the Internal Revenue Service concluded that the deduction timing rules of Internal Revenue Code (IRC) ? 404(a)(5) trump Subchapter L in governing a deduction for retiree medical expenses." (Sutherland Asbill & Brennan LLP)
[Guidance Overview] IRS Guidance for Approval of Revocation Requests for Multiemployer Plans (PDF)
2 pages. Excerpt: "On September 9, 2009, the IRS issued Revenue Procedure 2009-43. This guidance provides additional conditions for the automatic approval of requests for the revocation of multiemployer elections provided under the Worker, Retiree and Employer Recovery Act (WRERA)." (Prudential Retirement)
[Official Guidance] Disaster Relief Announcement 09-20 Relating to PBGC Deadlines in Response to Severe Storms and Flooding in Georgia
Excerpt: "Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred beginning September 18, 2009, in Georgia." (Pension Benefit Guaranty Corporation)
[Official Guidance] Disaster Relief Announcement 09-21 Relating to PBGC Deadlines in Response to Severe Storms and Flooding in American Samoa
Excerpt: "Pension Benefit Guaranty Corporation ('PBGC') is waiving certain penalties and extending certain deadlines in response to the severe storms and flooding that occurred on September 29, 2009, in American Samoa." (Pension Benefit Guaranty Corporation)
[Guidance Overview] Foreign Bank Account Reporting for Employee Benefit Plan Investments (PDF)
5 pages. Excerpt: "[I]t is difficult to say what the FBAR filing requirement will look like in the future. However, the retirement plan community is working with the IRS to lessen the burden on plans, and we have already begun to see signs of progress. Specifically, the IRS recently requested comments on the current FBAR form and instructions and indicated that the Treasury is considering issuing FBAR-related regulations. This is an extremely positive development that will, we hope, result in much-needed clarification regarding the filing obligation of U.S. persons with a financial interest in or signature or other authority over a plan's foreign financial account. In particular, it provides theTreasury the opportunity to exempt retirement plans from the FBAR filing requirement or, at the very least, to limit the substantial burden the requirement places on plans and plan fiduciaries." (ABA Trust & Investments via Groom Law Group)
HHS Unveils Online Form for Reporting HIPAA Health Information Breaches
Excerpt: "To report breaches of protected health information (PHI) under the Health Insurance Portability and Accountability Act (HIPAA), health plans and other covered entities subject to the law's privacy requirements must use a new online form on the HHS website. HIPAA changes enacted by the 2009 HITECH Act require group health plans to report PHI breaches to HHS, even if the breach originated with a vendor or elsewhere. Initial reports of breaches affecting fewer than 500 people are due March 1, 2010." (Mercer LLC)
[Guidance Overview] IRS Will Be Auditing Company Employment-Tax Practices Beginning in February
Excerpt: "The Internal Revenue Service will be conducting detailed employment-tax examinations of some 6,000 companies beginning in February, the agency has announced. These auditing initiatives are being carried out, the IRS maintains, to gather statistical data for its first National Research Program study of employment tax compliance in about 25 years. The likely reason for resurrecting this particular focus is that a study of the tax gap -- the difference between the amount of taxes collected and the amount owed -- done in 2005 showed that employment taxes, after underreporting of income by individuals, was the second-largest contributor to the tax gap . . . ." (Human Resource Executive Online)
EBSA Webcast to Address Form 5500 Issues
Excerpt: "[T]he Department of Labor's Employee Benefits Security Administration (EBSA) says that an important part of the discussion will focus on the Schedule C and the impact on 403(b) plans. The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) says it will host a free webcast November 5 to help employers, plan administrators and service providers prepare for changes to the Form 5500 and electronic filing requirement that begin with the 2009 plan year filings. According to the announcement, this third webcast will provide more details about preparing the Form 5500 and getting ready for the new electronic filing system. In addition, EBSA staff will address questions received from the public and provide practical tips for using the new ERISA Filing Acceptance System ? known as EFAST2. EFAST2 will receive only electronic filing submissions. The Web cast is scheduled for November 5 from 2:00 to 4:00 p.m. EST. Registration is required and available on a first-come, first-served basis. You can so do at http://www.dol.gov/ebsa . . . ." (planadviser)
[Guidance Overview] IRS Guidance on the Taxation of Employment-Related Settlement Payments
Excerpt: "In an internal memorandum dated October 22, 2008, but released only in July of this year, the Internal Revenue Service (IRS) Office of Chief Counsel has outlined information necessary to determine the correct tax treatment of employment-related settlement payments. See Office of Chief Counsel Internal Revenue Service Memorandum, PMTA-2009-035, dated October 22, 2008, Income and Employment Tax Consequences and Proper Reporting of Employment-Related Judgments and Settlements (the 'IRS Counsel Memorandum'). The IRS Counsel Memorandum outlines both the income and employment tax consequences, as well as the appropriate reporting, of settlement payments and contains useful information for companies settling employment-related lawsuits." (Tax Management Inc.)
[Guidance Overview] EBSA's Additional Guidance on Form 5500 Schedule C
Excerpt: "The Department of Labor's Employee Benefits Security Administration (EBSA) has issued additional guidance in response to questions from plans and service providers on the requirements for reporting service provider fees and other compensation on Schedule C of Form 5500. The EBSA noted that the expanded requirements apply to reporting for plan years beginning on or after January 1, 2009. The guidance is provided in the form of 25 frequently-asked questions (FAQs), and topics covered include: Gifts, entertainment, and other non-monetary compensation; Compensation to hedge fund investment managers; 'Look-through' investment funds; Mutual fund redemption fees; and ERISA fee recapture accounts." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of New Guidance from EBSA on Reporting of Service Provider Compensation on 2009 Schedule C of Form 5500
Excerpt: "On November 16, 2007, the Department of Labor's Employee Benefits Security Administration (EBSA) published final form revisions and a final regulation, generally effective for plan years beginning on or after January 1, 2009, providing new requirements for reporting service provider fees and other compensation on the Schedule C of the 2009 Form 5500 Annual Return/Report of Employee Benefit Plan. The purpose of these FAQs is to provide guidance to plan administrators and service providers on complying with the requirements of the 2009 Form 5500 Schedule C." (Employee Benefits Security Administration, U.S. Department of Labor)
[Guidance Overview] 403(b) Plans and EFAST2
Excerpt: "This article focuses on how EFAST2 will affect the Form 5500 filing requirements for 403(b) plans. In addition, the article discusses the DOL's changes to the Form 5500 filing requirements for 403(b) plans." (SunGard Relius)
[Guidance Overview] Important 2009 Deadlines for Retirement Plans (PDF)
2 pages. Excerpt: "This chart describes certain deadlines and planning items for the months of November and December that apply to tax-qualified plans. The deadlines are noted by the type of tax-qualified plan. The term DC Plan refers to a defined contribution plan including a 401(k) Plan and the term DB Plan refers to a defined benefit plan. Items that only apply to a 401(k) Plan are shown separately." (Drinker Biddle Reath LLP)
[Guidance Overview] Penalty for Failure to Disclose Listed Transaction Involving Roth IRA Applies Only to Participating Spouse
Excerpt: "The IRS Chief Counsel has advised in IRS Letter Ruling 200938022 (Chief Counsel Advice) that the penalty for the failure to disclose a listed transaction involving the avoidance of contribution limits for Roth IRAs as required by IRS Notice 2004-8 should not be treated as a joint and several liability of a husband and wife who file joint tax returns where only one of the spouses engaged in the transaction." (Wolters Kluwer)
PBGC Annual Charge Increases for 2010
Excerpt: "Defined benefit sponsors will see their per-participant insurance premiums to the Pension Benefit Guaranty Corp. (PBGC) go up by $1 next year. Business Insurance reported a federal law mandating a premium adjustment to reflect changes in the national average weekly wage during the prior year will bump the annual figure from $34 to $35." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Tips Offered on Retirement Plan Changes
Excerpt: "The Internal Revenue Service will change tax forms to allow refunds to be automatically deposited into retirement accounts. Whether the money is directed at an individual retirement account or a defined contribution plan such as a 401(k), employers and their employees need to be sure not to exceed the annual contribution limits for these plans. In 2009, the limit on contributions by individuals to 401(k) plans is $16,500, and the limit on contributions to IRAs is $5,000, with certain exceptions." (The National Underwriter Company; free registration or paid subscription required)
[Official Guidance] Flat-Rate PBGC Premium for Plan Year 2010 Rises to $35 for Single-Employer Plans; Unchanged at $9 for Multiemployer Plans
Excerpt: "Flat-Rate Premium Increase for Plan Year 2010: The per-participant flat-rate premium for plan year 2010 is $35.00 for single-employer plans (up from $34.00 for plan year 2009) and $9.00 for multiemployer plans (unchanged from plan year 2009). By law, the premium rates are adjusted for inflation each year based on changes in the national average wage index." (Pension Benefit Guaranty Corporation)
[Guidance Overview] Reporting 12b-1 Fees: New Reporting Requirement for Indirect Fees Paid by a Mutual Fund to a Broker-Dealer
Excerpt: "Beginning this year, covered plans will need to report certain information about 'indirect' payments, which include 12b-1 fees. (Indirect payments are those which are made by anyone other than the plan or the plan sponsor. Since 12b-1 fees are paid from a mutual fund to a broker-dealer, they are 'indirect.') Indirect fees are divided into two subcategories." (Reish & Reicher)
[Guidance Overview] ERISA Plan Sponsors Should Get Ready Now for New Form 5500 Requirement to Disclose Compensation Paid to Plan Service Providers
Excerpt: "Action Items for Plan Sponsors: Identify all plan service providers, including investment managers, record keepers, trustees, actuaries, brokers, claims administrators, etc. Contact all service providers to determine when and how they will provide the requireddisclosure. For example, some disclosure may be 'embedded' in other documents (e.g., prospectuses) rather than provided as a stand-alone disclosure in a single document. Work with ERISA counsel to ensure that the information received is sufficient to satisfy the Schedule C disclosure requirement and forward the information to the person or entitywho will prepare the Schedule C. Follow up promptly with service providers who fail to provide information or provide information that is incomplete. For service providers who assert that they are not required to provide separate reporting, the plan sponsor should receive written statements to that effect along with the service provider's reasoning or support. Incorporate the information received and reported on Schedule C as part of the plan sponsor's periodical review of the service provider's performance and compensation levels to determine whether the compensation arrangement continues to be reasonable." (Paul, Hastings, Janofsky & Walker LLP)
[Opinion] Joint Comment Letter to IRS on Bank Secrecy Act for Public Pensions
Excerpt: "On October 5, NCPERS, along with NASRA and NCTR, filed comments with the IRS on the Bank Secrecy Act, in response to the IRS' solicitation of comments on the Foreign Bank and Financial Accounts (FBAR) filing obligations. The Bank Secrecy Act (BSA) requires reports 'where they have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism.' NCPERS takes the view that a requirement of FBAR reporting and recordkeeping by public pension plans will not further the aims of the statute and will instead create an unproductive and unnecessary administrative burden for plans. As a result, we requested that the Department of Treasury issue specific guidance indicating that public pension plans are not covered by the FBAR reporting requirements or exempting public pension plans." (National Conference on Public Employee Retirement Systems)
[Guidance Overview] Group Health Plan Excise Tax Reporting Obligations Coming in 2010
Excerpt: "With the publication of final regulations on excise tax reporting, effective January 1, 2010, employers who sponsor group health plans now will be required to report and pay excise taxes for failing to satisfy certain federal group health plan mandates, unless timely corrected. In addition, excise tax reporting is required if comparable employer contribution rules are not satisfied for health savings accounts (HSAs) and Archer medical savings accounts (MSAs). Failure to file the excise tax return and pay the excise tax on or before the required due date will result, under Internal Revenue Code section 6651, in penalties and related interest unless the failure to timely file or pay is due to reasonable cause and not to willful neglect." (Groom Law Group)
DOL Rejects Bush Administration LM-2 Union Reporting Changes
Excerpt: "In a generally anticipated move, the U.S. Department of Labor's Office of Labor-Management Standards (OLMS) will publish a rule [today] rescinding the Bush administration's most recent changes to the LM-2 union report filed under the Labor-Management Reporting and Disclosure Act (LMRDA). This development confirms the Obama administration's interest in reducing the administrative burden on unions, and may signal the beginning of a focus shift to certain aspects of employer reporting under the LMRDA. In particular, many believe that OLMS will soon enhance scrutiny on employer and consultant reporting of so-called 'persuader' activity." (Morgan, Lewis & Bockius LLP)
Congressmen Want HIPAA Harm Threshold Eliminated
Excerpt: "Six members of the House of Representatives signed a letter written to HHS Secretary Kathleen Sebelius that urges HHS to repeal or revise the harm standard provision in HHS' interim final rule on breach notification. . . . The Congressmen, all but one of whom are Democrats, wrote they are 'deeply concerned' about the harm provision because it gives covered entities and business associates (BAs) a 'breadth of discretion' as they determine the level of harm to an individual whose PHI was inappropriately disclosed." (HealthLeaders Media)
[Guidance Overview] HHS's Reporting Form for HIPAA Breaches
Excerpt: "[The Department of Health and Human Services] has now published an online form for reporting breaches of unsecured PHI. The HHS form provides a checklist for plan sponsors who experience a breach of unsecured PHI. Plan sponsors can use the form to help them track breaches and to assure that appropriate preventive measures are in place." (The Segal Group, Inc.)
[Guidance Overview] Breach Notification Under the HITECH Act: Action Points for Employers Who Sponsor Self-Insured Group Health Plans (PDF)
Excerpt: "Because the Rule is currently effective and because sanctions will be imposed by HHS for failure to provide required notifications for breaches that are discovered on or after February 22, 2010, what should employers who sponsor self-insured group health plans begin doing now to comply?" (Porter Wright Morris & Arthur LLP)
[Guidance Overview] Will My Client Be Able To Navigate IFILE? More FAQs on EFAST2
Excerpt: "[Addressed here are] the issues and procedures with which the 5500 preparers and plan sponsors will need to familiarize themselves to make the transition to electronic filing. Many 5500 preparers expect the transition to mandatory electronic filing to be difficult. The primary reason for this concern is that clients (plan sponsors) will need to obtain and enter filing signer credentials electronically. Some 5500 preparers also are considering preparing the Form 5500 (in this article, references to Form 5500 include the schedules and attachments) on their desktop software and then sending it to their client to file using the DOL's IFILE system. In this article, we address the issues that a 5500 preparer will need to consider in determining whether having the client file under IFILE is a feasible option." (SunGard Relius)
[Opinion] Groom Law Group Comments on FBAR Filing Requirement for Pension Plans (PDF)
20 pages. Excerpt: "We write to respond to the Treasury's request for comments regarding FBAR and the accompanying instructions. As noted in our July 29, 2009 letter and discussed in more detail below, the policy goals of FBAR ? to detect and prevent taxpayers from hiding assets offshore toavoid income taxes or launder money ? are not advanced by requiring U.S persons to file an FBAR with respect to 'foreign financial accounts' held by or for the benefit of Plans. Nevertheless, Treasury may expect at least a 40 percent increase in annual FBAR filings (nearly 75,000 additional filings) from Plans qualified under Code section 401(a), which would test IRS's already limited resources to indentify violators. Thus, we respectfully make the following recommendations . . . ." (Groom Law Group)
Short List of Important Dates to Remember
Excerpt: "The [list] provides insurance agents/brokers, employers and benefits professionals a checklist of key upcoming dates and deadlines related to health benefits. This does not constitute all of the deadlines applicable to employers and some deadlines may be different based on variations in plan year or plan design." (Infinisource)
[Guidance Overview] HIPAA Obligations Create Legal Challenges
Excerpt: "Until Sept. 23, when consumers' health information was accidentally disclosed, they might not have known about it. But under the new regulation, breaches must be reported to the Department of Health and Human Services and to the individuals affected. If providers cannot locate them, they must report the violation on their Web site and to the local media. The media must also be notified if a breach affects more than 500 individuals. Here's where the regulation gets a little murky . . . . It's left up to the businesses themselves to make fact-based determinations as to whether notification is necessary, based on whether there has been a 'significant risk of financial, reputational, or other harm' to the patient. 'It's a bit of a judgment call. We're waiting to see what that turns out as,' . . . ." (Wisconsin Law Journal)
[Guidance Overview] IRS Final Regs on COBRA, HIPAA and HSA Penalty Reporting, Clarifies HSA Comparability Rules
Excerpt: "Final IRS rules require filing Form 8928 to report and pay excise taxes for violations of HIPAA portability, COBRA, or comparability rules for employer contributions to health savings accounts (HSA) outside of a cafeteria plan or to Archer medical savings accounts. The regulations also clarify certain HSA comparability rules, including the allowance for some higher-paid employees and contributions for midyear plan entrants. The new requirements and clarifications apply to filings due and employer HSA contributions made on or after Jan. 1, 2010." (Mercer LLC)
[Guidance Overview] IRS's 2009 Version of Form 3903 for Use by Individuals Reporting Deductible Moving Expenses
Excerpt: "EBIA Comment: Code Section 132(g) allows employers to provide certain moving expense reimbursements directly or indirectly to their employees on a tax-free basis, so long as the moving expenses would have qualified for a deduction from income on the employee's individual income tax return. In addition, employers often provide nonqualified moving expense benefits, which are includible in the employees' taxable income. Form 3903 helps employees calculate the amount they can exclude from income if tax-free reimbursements do not cover all of their qualifying expenses, or the amount they must report as additional taxable income if untaxed reimbursements exceed their qualifying expenses." (Employee Benefits Institute of America)
[Opinion] American Benefits Council Comment Letter to SEC on FBAR Issues (PDF)
3 pages. Excerpt: "The American Benefits Council (the 'Council') is writing to urge guidance with respect to foreign financial account reporting (Form TD F 90-22.1 (Report of Foreign financial andFinancial Accounts, or FBAR)), to the effect that foreign accounts held in connection with retirement plan trusts are not considered 'financial accounts' for FBAR reporting purposes. We further request clarification that executives and managers who serve as trustees, fiduciaries, investment advisors or in other management or administrative capacities with respect to retirement plan trusts are exempt from FBAR reporting requirements with respect to those activities." (American Benefits Council)
[Guidance Overview] Online Form and Instructions Available for Reporting Breaches of Unsecured PHI to HHS
Excerpt: "EBIA Comment: Covered entities (including health plans) will likely appreciate this relatively straightforward form, as well as the ability to complete and file it online. It is worth noting that, for breaches affecting more than 500 individuals, ARRA requires that some of the information provided on this form be made publicly available by posting on the HHS website. ARRA also requires that OCR provide an annual report to Congress regarding the number and nature of breaches that are reported each year and the actions taken to respond to such breaches." (Employee Benefits Institute of America)
[Guidance Overview] Handling of One-Participant Plans Under EFAST2
Excerpt: "In our continuing series of FAQs on EFAST2, we are addressing the issues and procedures with which the 5500 preparers and plan sponsors will need to familiarize themselves to make the transition to electronic filing. [Question:] Has the DOL and the IRS changed the definition of one-participant plan for purposes of the 2009 5500 filing? [Answer:] Yes. The instructions for Form 5500 and Form 5500-SF reflect a new definition of one-participant plan for the 2009 plan year." (SunGard Relius)
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