On February 23, 2015 Treasury and the Internal Revenue Service (IRS) issued Notice 2015-16 (First Notice), their opening salvo in what may come to be called the Cadillac Tax Wars by future generations of benefits lawyers. In the words of Treasury and the IRS, Notice 2015-16 was intended to initiate and inform the process of developing regulatory guidance regarding the excise tax. . . In addition to sketching out Treasury and the IRSs contemplated approaches to several issues arising under the excise tax on high cost employer-sponsored health coverage, Notice 2015-16 promised a second notice prior to the issuance of proposed regulations.
Now that several months have passed since publication of Notice 2015-16 it is time to turn attention to what Treasury and the IRS may include in the promised second notice. Based on informal comments from Treasury and IRS officials it seems likely that a second notice will be issued by the end of the summer, if not sooner. The article discusses five issues that would be helpful for Treasury and IRS to address in the upcoming second notice. Please see the attached article for further information.