Health Insurance Providers Fee, 8173-8175 [2018-03884]
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Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Rules and Regulations
subject to sections 202 or 205 of the
Unfunded Mandates Reform Act of 1995
(UMRA) (2 U.S.C. 1532 and 1535). In
addition, this action does not
significantly or uniquely affect small
governments or impose a significant
intergovernmental mandate as described
in sections 203 and 204 of the UMRA
(2 U.S.C. 1533 and 1534).
This action is further not classified as
a ‘‘rule’’ under Chapter 8 of the Small
Business Regulatory Enforcement
Fairness Act of 1996, because it pertains
to agency organization, procedure, or
practice that does not substantially
affect the rights or obligations of nonagency parties. See 5 U.S.C. 804(3)(C).
C. Paperwork Reduction Act
This rule does not contain a collection
of information requirements subject to
Office of Management and Budget
review under the Paperwork Reduction
Act, 44 U.S.C. 3501 et seq.
action because this rule is not
significant under E.O. 12866.
List of Subjects in 20 CFR Part 802
Administrative practice and
procedure, Black lung benefits,
Longshore and harbor workers, Workers’
compensation.
For the reasons set forth above, the
Department of Labor amends 20 CFR
part 802 as follows:
PART 802—RULES OF PRACTICE AND
PROCEDURE
1. The authority citation for part 802
is revised to read as follows:
■
Authority: 5 U.S.C. 301; 30 U.S.C. 901 et
seq.; 33 U.S.C. 901 et seq.; Reorganization
Plan No. 6 of 1950, 15 FR 3174; Secretary of
Labor’s Order 03–2006, 71 FR 4219, January
25, 2006.
2. Section 802.204 is revised to read
as follows:
■
§ 802.204 Place for filing notice of appeal
and correspondence.
The Department has reviewed this
rule in accordance with the Executive
Order on Federalism (Executive Order
13132, 64 FR 43255, August 10, 1999).
This rule does not have federalism
implications as outlined in E.O. 13132.
The rule does not have substantial
direct effects on the States, on the
relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government.
Any notice of appeal or other
correspondence filed by mail shall be
sent to the U.S. Department of Labor,
Benefits Review Board, ATTN: Office of
the Clerk of the Appellate Boards
(OCAB), 200 Constitution Ave. NW,
Washington, DC 20210–0001. Notices of
appeal or other correspondence may be
otherwise presented to the Clerk. A
copy of the notice of appeal shall be
served on the deputy commissioner who
filed the decision or order being
appealed and on all other parties by the
party who files a notice of appeal. Proof
of service of the notice of appeal on the
deputy commissioner and other parties
shall be included with the notice of
appeal.
The Department has reviewed this
rule under the terms of Executive Order
13175 (65 FR 67249, November 6, 2000)
and determined it does not have ‘‘tribal
implications.’’ The rule does not have
‘‘substantial direct effects on one or
more Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes.’’
As a result, no Tribal summary impact
statement has been prepared.
jstallworth on DSKBBY8HB2PROD with RULES
F. Executive Order 12866 and Executive
Order 13771
This rule has been drafted and
reviewed in accordance with Executive
Order 12866. The rule is not a
‘‘significant regulatory action’’ as
defined by section 3(f) of the order.
Accordingly, there is no requirement for
an assessment of potential costs and
benefits under section 6(a)(3) of
Executive Order 12866. In addition, this
rule is not an E.O. 13771 regulatory
VerDate Sep<11>2014
14:55 Feb 23, 2018
Jkt 244001
Signed at Washington, DC, this 15th day of
February, 2018.
R. Alexander Acosta,
Secretary, Department of Labor.
[FR Doc. 2018–03783 Filed 2–23–18; 8:45 am]
BILLING CODE 4510–HT–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 57
[TD 9830]
RIN 1545–BM52
Health Insurance Providers Fee
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
PO 00000
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Fmt 4700
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This document contains final
regulations that provide rules for the
definition of a covered entity for
purposes of the fee imposed by section
9010 of the Patient Protection and
Affordable Care Act, as amended. The
final regulations supersede and adopt
the text of temporary regulations that
provide rules for the definition of a
covered entity. The final regulations
affect persons engaged in the business of
providing health insurance for United
States health risks.
DATES: Effective Date: The final
regulations are effective February 22,
2018.
FOR FURTHER INFORMATION CONTACT:
Rachel S. Smith at (202) 317–6855 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
D. Executive Order 13132 (Federalism)
E. Executive Order 13175, Indian Tribal
Governments
8173
Background
Section 9010 of the Patient Protection
and Affordable Care Act (PPACA),
Public Law 111–148 (124 Stat. 119
(2010)), as amended by section 10905 of
PPACA, and as further amended by
section 1406 of the Health Care and
Education Reconciliation Act of 2010,
Public Law 111–152 (124 Stat. 1029
(2010)) (collectively, the Affordable Care
Act or ACA) imposes an annual fee on
covered entities that provide health
insurance for United States health risks.
All references in this preamble to
section 9010 are references to section
9010 of the ACA. Section 9010 did not
amend the Internal Revenue Code
(Code) but contains cross-references to
specified Code sections. Unless
otherwise indicated, all other references
to subtitles, chapters, subchapters, and
sections in this preamble are references
to subtitles, chapters, subchapters, and
sections in the Code and related
regulations. All references to ‘‘fee’’ in
this preamble are references to the fee
imposed by section 9010.
On November 27, 2013, the
Department of the Treasury (Treasury
Department) and the IRS published final
regulations (TD 9643) relating to the
health insurance providers fee in the
Federal Register (78 FR 71476). On
February 26, 2015, the Treasury
Department and the IRS published
temporary regulations (TD 9711)
relating to the health insurance
providers fee in the Federal Register (80
FR 10333). A notice of proposed
rulemaking (REG–143416–14) crossreferencing the temporary regulations
was published in the Federal Register
in the same issue (80 FR 10435). The
temporary regulations provided further
guidance on the definition of a covered
entity for the 2015 fee year and
subsequent fee years.
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26FER1
8174
Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Rules and Regulations
jstallworth on DSKBBY8HB2PROD with RULES
The Treasury Department and the IRS
received two written comments with
respect to the notice of proposed
rulemaking. No public hearing was
requested or held. After considering the
public written comments, the final
regulations adopt the proposed
regulations without change and the
temporary regulations are removed.
Explanation of Provisions
The temporary regulations provided
that, for the 2015 fee year and each
subsequent fee year, an entity qualified
for an exclusion under section
9010(c)(2) if it qualified for an exclusion
either for the entire data year ending on
the prior December 31st or for the entire
fee year beginning on January 1st. The
temporary regulations also generally
imposed a consistency requirement that
bound an entity to its original selection
of either the data year or the fee year (its
test year) to determine whether it
qualified for an exclusion under section
9010(c)(2) for the 2015 fee year and each
subsequent fee year. Next, the
temporary regulations imposed a special
rule for any entity that uses the fee year
as its test year. Finally, the temporary
regulations provided that a controlled
group must report net premiums written
only for each person who is a controlled
group member at the end of the day on
December 31st of the data year and that
would qualify as a covered entity in the
fee year if it were a single-person
covered entity (that is, not a member of
a controlled group).
The Treasury Department and the IRS
received two written comments in
response to the proposed and temporary
regulations. Both commenters agreed
with the approach described in the
proposed and temporary regulations.
One commenter suggested that the final
rules add three additional requirements.
First, the commenter suggested that
entities seeking to claim the non-profit
exemption described in section
9010(c)(2)(C) and § 57.2(b)(2)(iii) of the
Health Insurance Providers Fee
Regulations be required to file a Form
8963, ‘‘Report of Health Insurance
Provider Information,’’ or similar report
indicating its exempt status for either
the data year or the fee year. Second, the
commenter suggested that such entities
claiming exempt status for the fee year
should also file a year-end statement
certifying that they maintained their
exempt status through the end of the fee
year. The Treasury Department and the
IRS received similar comments prior to
issuing the final regulations. The
preamble to TD 9643 (78 FR 71476)
explains that the Treasury Department
and the IRS declined to adopt
commenters’ suggestions to require an
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Jkt 244001
entity qualifying for an exclusion to
report its net premiums written because
section 9010(g)(1) applies only to
covered entities. Furthermore, imposing
additional filing requirements for only
certain entities is contrary to Executive
Order 13789, which directs the Treasury
Department to reduce tax regulatory
burdens. Imposing additional filing
requirements for only certain entities is
also contrary to Executive Order 13765,
which directs the executive branch to
minimize the regulatory burden of the
ACA specifically. Therefore, we decline
to adopt the commenter’s suggestions.
Third, the commenter suggested that
any entities that fail to remain exempted
for the full duration of the fee year
should be subject to a fee assessment at
the end of the year. The final regulations
do not adopt this suggestion. Section
57.6(c) of the Health Insurance
Providers Fee Regulations provides that
the IRS will not alter fee calculations on
the basis of information provided after
the end of the error correction period.
Section 9010(g)(2) and § 57.3(b)(1) of the
Health Insurance Providers Fee
Regulations impose a penalty on
covered entities that fail to timely
submit Form 8963 without reasonable
cause. It is possible that if an entity fails
to remain exempted for the full duration
of the fee year, such entity will be
subject to a penalty provided for by the
existing statutory and regulatory
framework. An additional fee
assessment for such entities is not
necessary.
Special Analyses
Certain IRS regulations, including
these, are exempt from the requirements
of Executive Order 12866, as
supplemented and reaffirmed by
Executive Order 13563. Therefore, a
regulatory impact assessment is not
required. Because the final regulations
do not impose a collection of
information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, the
temporary regulations that preceded the
final regulations was submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these final
regulations is Rachel S. Smith, Office of
the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the
Treasury Department and the IRS
participated in their development.
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List of Subjects in 26 CFR Part 57
Health insurance, Reporting and
recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 57 is
amended as follows:
PART 57—HEALTH INSURANCE
PROVIDERS FEE
Paragraph 1. The authority citation
for part 57 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805; sec. 9010, Pub.
L. 111–148 (124 Stat. 119 (2010)). * * *
Par. 2. Section 57.2 is amended by
revising paragraphs (b)(3) and (c)(3)(ii)
as follows:
■
§ 57.2
Explanation of terms.
*
*
*
*
*
(b) * * *
(3) Application of exclusions—(i) Test
year. An entity qualifies for an
exclusion described in paragraphs
(b)(2)(i) through (iv) of this section if it
so qualifies in its test year. The term test
year means either the entire data year or
the entire fee year.
(ii) Consistency rule. For purposes of
paragraph (b)(3)(i) of this section, an
entity must use the same test year as it
used in its first fee year beginning after
December 31, 2014, and in each
subsequent fee year. Thus, for example,
if an entity used the 2014 data year as
its test year for the 2015 fee year, that
entity must use the data year as its test
year for each subsequent fee year.
(iii) Special rule for fee year as test
year. For purposes of paragraph (b)(3) of
this section, any entity that uses the fee
year as its test year but ultimately does
not qualify for an exclusion described in
paragraphs (b)(2)(i) through (iv) of this
section for that entire fee year must use
the data year as its test year for each
subsequent fee year.
* * *
(c) * * *
(3) * * *
(ii) A person is treated as being a
member of the controlled group if it is
a member of the group at the end of the
day on December 31st of the data year.
However, a person’s net premiums
written are included in net premiums
written for the controlled group only if
the person would qualify as a covered
entity in the fee year if the person were
not a member of the controlled group.
*
*
*
*
*
§ 57.2T
■
[Removed]
Par. 3. Section 57.2T is removed.
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Federal Register / Vol. 83, No. 38 / Monday, February 26, 2018 / Rules and Regulations
Par. 4. Section 57.10 is amended by
revising paragraph (b) to read as follows:
■
§ 57.10
Effective/applicability date.
*
*
*
*
*
(b) Paragraphs (b)(3) and (c)(3)(ii) of
§ 57.2. Paragraphs (b)(3) and (c)(3)(ii) of
§ 57.2 apply on February 22, 2018.
§ 57.10T
■
this document for further instructions
on submitting comments.
Viewing material proposed for
incorporation by reference. Make
arrangements to view this material by
contacting the person identified in the
FOR FURTHER INFORMATION CONTACT
section of this document.
For
information about this document, call or
email LT Alexandra Miller, Office of
Design and Engineering Standards,
Lifesaving and Fire Safety Division (CG–
ENG–4), Coast Guard; telephone 202–
372–1356, email Alexandra.S.Miller@
uscg.mil.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
[Removed]
Par. 5. Section 57.10T is removed.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
Approved: February 15, 2018.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
Table of Contents for Preamble
[FR Doc. 2018–03884 Filed 2–22–18; 11:15 am]
I. Abbreviations
II. Basis and Purpose, and Regulatory History
III. Discussion of the Rule
IV. Regulatory Analyses
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates Reform Act
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment
V. Public Participation and Request for
Comments
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
46 CFR Parts 136 and 142
[Docket No. USCG–2017–1060]
RIN 1625–AC43
Harmonization of Fire Protection
Equipment Standards for Towing
Vessels
Coast Guard, DHS.
Interim final rule; request for
comments.
AGENCY:
I. Abbreviations
ACTION:
The Coast Guard is issuing an
interim final rule to apply changes made
by the 2016 final rule, Harmonization of
Standards for Fire Protection, Detection,
and Extinguishing Equipment, to
inspected towing vessels. Applying
these updated fire protection
requirements to inspected towing
vessels will align regulations for
inspected towing vessels with other
commercial vessel regulations.
DATES: This interim final rule is
effective March 28, 2018. Comments
and related material must be submitted
to the online docket via https://
www.regulations.gov on or before March
28, 2018. The incorporation by reference
of certain publications listed in the rule
is approved by the Director of the
Federal Register on March 28, 2018.
ADDRESSES: You may submit comments
identified by docket number USCG–
2017–1060 using the Federal
eRulemaking Portal at https://
www.regulations.gov. See the ‘‘Public
Participation and Request for
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section of
jstallworth on DSKBBY8HB2PROD with RULES
SUMMARY:
VerDate Sep<11>2014
14:55 Feb 23, 2018
Jkt 244001
CFR Code of Federal Regulations
DHS Department of Homeland Security
Fire Protection rule Harmonization of
Standards for Fire Protection, Detection,
and Extinguishing Equipment final rule,
81 FR 48220, July 22, 2016
FR Federal Register
IFR Interim final rule
NFPA 10 National Fire Protection
Association Standard for Portable Fire
Extinguishers, 2010 edition
OMB Office of Management and Budget
RA Regulatory Analysis
§ Section symbol
Subchapter M 46 CFR subchapter M—
Towing Vessels
U.S.C. United States Code
II. Basis and Purpose, and Regulatory
History
This interim final rule harmonizes fire
protection requirements regarding
portable and semi-portable fire
extinguishers on inspected towing
vessels with the requirements for other
commercial vessels in Title 46 of the
Code of Federal Regulations (CFR),
including uninspected towing vessels.
The Coast Guard may regulate fire
protection equipment on inspected
towing vessels under statutory authority
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Fmt 4700
Sfmt 4700
8175
found in 46 U.S.C. 3301 and 3306,
which was delegated by the Secretary of
Homeland Security to the Coast Guard
in DHS Delegation Number
0170.1(II)(92).
The Coast Guard issues this rule
without prior notice and opportunity for
public comment. Section 553(b)(B) of
the Administrative Procedure Act
provides an exception from notice and
comment requirements when an agency
finds that notice and comment are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ In accordance
with 5 U.S.C. 553(b)(B), the Coast Guard
finds that notice and comment are
unnecessary because this rule would not
require a substantive change of fire
protection equipment on towing vessels,
and would align with regulatory
requirements already met by all existing
towing vessels. This rule will revise 46
CFR subchapter M to require inspected
towing vessels to meet fire protection
equipment requirements that already
apply to other commercial vessels,
including uninspected towing vessels.
The Coast Guard updated these
standards in its 2016 Fire Protection
rule. At the time the Coast Guard
updated the fire protection equipment
requirements for other commercial
vessels, there were no towing vessels
inspected under subchapter M: The
Coast Guard established subchapter M
in a June 2016 rule that published one
month prior to the Fire Protection rule,
and, as a practical matter, did not place
requirements on any towing vessel until
July 2017 or later.1 Because of the
timing of subchapter M requirements, at
this time uninspected towing vessels are
subject to the more modern Fire
Protection rule provisions. This rule
corrects the anomalous situation
whereby a towing vessel transitioning
from uninspected to inspected status
would be required to comply with the
previous standards instead of the
updated Fire Protection rule. Moreover,
all existing marine fire extinguishers
already meet the requirements of this
interim final rule, and the number of
extinguishers required on a vessel will
not change. Because this rule will not
require any existing vessel to change its
equipment or practices, the Coast Guard
finds good cause to forgo notice and
opportunity to comment.
1 The Inspection of Towing Vessels final rule
published on June 20, 2016 (81 FR 40003). It gave
existing towing vessels 2 years or more to comply
with the rule, and defined ‘‘new towing vessel’’
such that no vessel would be subject to new vessel
requirements until at least July 20, 2017. See
discussion at 81 FR 40061.
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]]>Agencies
[Federal Register Volume 83, Number 38 (Monday, February 26, 2018)]
[Rules and Regulations]
[Pages 8173-8175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03884]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 57
[TD 9830]
RIN 1545-BM52
Health Insurance Providers Fee
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations that provide rules
for the definition of a covered entity for purposes of the fee imposed
by section 9010 of the Patient Protection and Affordable Care Act, as
amended. The final regulations supersede and adopt the text of
temporary regulations that provide rules for the definition of a
covered entity. The final regulations affect persons engaged in the
business of providing health insurance for United States health risks.
DATES: Effective Date: The final regulations are effective February 22,
2018.
FOR FURTHER INFORMATION CONTACT: Rachel S. Smith at (202) 317-6855 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 9010 of the Patient Protection and Affordable Care Act
(PPACA), Public Law 111-148 (124 Stat. 119 (2010)), as amended by
section 10905 of PPACA, and as further amended by section 1406 of the
Health Care and Education Reconciliation Act of 2010, Public Law 111-
152 (124 Stat. 1029 (2010)) (collectively, the Affordable Care Act or
ACA) imposes an annual fee on covered entities that provide health
insurance for United States health risks. All references in this
preamble to section 9010 are references to section 9010 of the ACA.
Section 9010 did not amend the Internal Revenue Code (Code) but
contains cross-references to specified Code sections. Unless otherwise
indicated, all other references to subtitles, chapters, subchapters,
and sections in this preamble are references to subtitles, chapters,
subchapters, and sections in the Code and related regulations. All
references to ``fee'' in this preamble are references to the fee
imposed by section 9010.
On November 27, 2013, the Department of the Treasury (Treasury
Department) and the IRS published final regulations (TD 9643) relating
to the health insurance providers fee in the Federal Register (78 FR
71476). On February 26, 2015, the Treasury Department and the IRS
published temporary regulations (TD 9711) relating to the health
insurance providers fee in the Federal Register (80 FR 10333). A notice
of proposed rulemaking (REG-143416-14) cross-referencing the temporary
regulations was published in the Federal Register in the same issue (80
FR 10435). The temporary regulations provided further guidance on the
definition of a covered entity for the 2015 fee year and subsequent fee
years.
[[Page 8174]]
The Treasury Department and the IRS received two written comments
with respect to the notice of proposed rulemaking. No public hearing
was requested or held. After considering the public written comments,
the final regulations adopt the proposed regulations without change and
the temporary regulations are removed.
Explanation of Provisions
The temporary regulations provided that, for the 2015 fee year and
each subsequent fee year, an entity qualified for an exclusion under
section 9010(c)(2) if it qualified for an exclusion either for the
entire data year ending on the prior December 31st or for the entire
fee year beginning on January 1st. The temporary regulations also
generally imposed a consistency requirement that bound an entity to its
original selection of either the data year or the fee year (its test
year) to determine whether it qualified for an exclusion under section
9010(c)(2) for the 2015 fee year and each subsequent fee year. Next,
the temporary regulations imposed a special rule for any entity that
uses the fee year as its test year. Finally, the temporary regulations
provided that a controlled group must report net premiums written only
for each person who is a controlled group member at the end of the day
on December 31st of the data year and that would qualify as a covered
entity in the fee year if it were a single-person covered entity (that
is, not a member of a controlled group).
The Treasury Department and the IRS received two written comments
in response to the proposed and temporary regulations. Both commenters
agreed with the approach described in the proposed and temporary
regulations. One commenter suggested that the final rules add three
additional requirements. First, the commenter suggested that entities
seeking to claim the non-profit exemption described in section
9010(c)(2)(C) and Sec. 57.2(b)(2)(iii) of the Health Insurance
Providers Fee Regulations be required to file a Form 8963, ``Report of
Health Insurance Provider Information,'' or similar report indicating
its exempt status for either the data year or the fee year. Second, the
commenter suggested that such entities claiming exempt status for the
fee year should also file a year-end statement certifying that they
maintained their exempt status through the end of the fee year. The
Treasury Department and the IRS received similar comments prior to
issuing the final regulations. The preamble to TD 9643 (78 FR 71476)
explains that the Treasury Department and the IRS declined to adopt
commenters' suggestions to require an entity qualifying for an
exclusion to report its net premiums written because section 9010(g)(1)
applies only to covered entities. Furthermore, imposing additional
filing requirements for only certain entities is contrary to Executive
Order 13789, which directs the Treasury Department to reduce tax
regulatory burdens. Imposing additional filing requirements for only
certain entities is also contrary to Executive Order 13765, which
directs the executive branch to minimize the regulatory burden of the
ACA specifically. Therefore, we decline to adopt the commenter's
suggestions.
Third, the commenter suggested that any entities that fail to
remain exempted for the full duration of the fee year should be subject
to a fee assessment at the end of the year. The final regulations do
not adopt this suggestion. Section 57.6(c) of the Health Insurance
Providers Fee Regulations provides that the IRS will not alter fee
calculations on the basis of information provided after the end of the
error correction period. Section 9010(g)(2) and Sec. 57.3(b)(1) of the
Health Insurance Providers Fee Regulations impose a penalty on covered
entities that fail to timely submit Form 8963 without reasonable cause.
It is possible that if an entity fails to remain exempted for the full
duration of the fee year, such entity will be subject to a penalty
provided for by the existing statutory and regulatory framework. An
additional fee assessment for such entities is not necessary.
Special Analyses
Certain IRS regulations, including these, are exempt from the
requirements of Executive Order 12866, as supplemented and reaffirmed
by Executive Order 13563. Therefore, a regulatory impact assessment is
not required. Because the final regulations do not impose a collection
of information on small entities, the Regulatory Flexibility Act (5
U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the
Code, the temporary regulations that preceded the final regulations was
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small business.
Drafting Information
The principal author of these final regulations is Rachel S. Smith,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the Treasury Department and
the IRS participated in their development.
List of Subjects in 26 CFR Part 57
Health insurance, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 57 is amended as follows:
PART 57--HEALTH INSURANCE PROVIDERS FEE
0
Paragraph 1. The authority citation for part 57 continues to read in
part as follows:
Authority: 26 U.S.C. 7805; sec. 9010, Pub. L. 111-148 (124 Stat.
119 (2010)). * * *
0
Par. 2. Section 57.2 is amended by revising paragraphs (b)(3) and
(c)(3)(ii) as follows:
Sec. 57.2 Explanation of terms.
* * * * *
(b) * * *
(3) Application of exclusions--(i) Test year. An entity qualifies
for an exclusion described in paragraphs (b)(2)(i) through (iv) of this
section if it so qualifies in its test year. The term test year means
either the entire data year or the entire fee year.
(ii) Consistency rule. For purposes of paragraph (b)(3)(i) of this
section, an entity must use the same test year as it used in its first
fee year beginning after December 31, 2014, and in each subsequent fee
year. Thus, for example, if an entity used the 2014 data year as its
test year for the 2015 fee year, that entity must use the data year as
its test year for each subsequent fee year.
(iii) Special rule for fee year as test year. For purposes of
paragraph (b)(3) of this section, any entity that uses the fee year as
its test year but ultimately does not qualify for an exclusion
described in paragraphs (b)(2)(i) through (iv) of this section for that
entire fee year must use the data year as its test year for each
subsequent fee year.
* * *
(c) * * *
(3) * * *
(ii) A person is treated as being a member of the controlled group
if it is a member of the group at the end of the day on December 31st
of the data year. However, a person's net premiums written are included
in net premiums written for the controlled group only if the person
would qualify as a covered entity in the fee year if the person were
not a member of the controlled group.
* * * * *
Sec. 57.2T [Removed]
0
Par. 3. Section 57.2T is removed.
[[Page 8175]]
0
Par. 4. Section 57.10 is amended by revising paragraph (b) to read as
follows:
Sec. 57.10 Effective/applicability date.
* * * * *
(b) Paragraphs (b)(3) and (c)(3)(ii) of Sec. 57.2. Paragraphs
(b)(3) and (c)(3)(ii) of Sec. 57.2 apply on February 22, 2018.
Sec. 57.10T [Removed]
0
Par. 5. Section 57.10T is removed.
Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
Approved: February 15, 2018.
David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2018-03884 Filed 2-22-18; 11:15 am]
BILLING CODE 4830-01-P
