Skip to main content
  • Solutions for Employers

    Enhance your benefits program with a custom strategy that not only engages your employees and helps retain your talent—but also lightens the load on HR.

    How We Help
    • Strategic Partner
    • Professional Enrollment
    • Benefits Education
    • Total Benefits Solution
    • Benefits and Services
    Who We Serve
    • Education
    • Public Sector
    • Automotive
    • Manufacturing
    • Healthcare
  • Resource Library

    Explore our catalog of blog articles, educational videos, customer stories, and more.

    View All Resources

    Resource Types
    • Blog Articles
    • Videos
    • Customer Stories
    • Tools
    • Help Center
    • All Resources

    An Employer's Guide to a Successful Enrollment

    Download the free how-to guide to get your enrollment strategy on the right path. 

    Download Now
  • Help Center
  • Login
  • Strategy
  • Reimbursement Accounts
  • Supplemental Benefits
  • Customer Stories
  • Compliance
American Fidelity Logo

Supreme Court Agrees to Hear ACA Challenge; IRS Says No Statute of Limitations for ACA Penalties

March 05, 2020

2 minute read

Category: Compliance Updates

Gavel and notes

SCOTUS Ruling Expected After Presidential Election

The Supreme Court announced it will hear a challenge to the validity of the ACA* during the session that begins in October of 2020, making it unlikely that the high court could issue a ruling prior to the November presidential election. Insurers, employers and consumers will look to the Supreme Court to address whether pieces of the law (namely, the ACA’s individual mandate) can be struck down while other components, such as consumer protections for individuals with pre-existing conditions, can continue.

No Time Limit on Enforcing IRS ACA Employer Penalties

In other recent news, the Internal Revenue Service (IRS) issued a memo indicating that no statute of limitations applies to penalty assessments under the ACA’s employer mandate. In Office of Chief Counsel Memorandum 20200801F, the IRS explains there is no applicable statute of limitations on assessment because there is no tax return filed to report an employer’s liability for the penalty assessment. This means the IRS could go back for an indefinite amount of time to seek payment from employers.

What You Need to Know

  • The ACA’s employer responsibilities continue in full force, including reporting requirements and the mandate that large employers offer affordable, adequate coverage or pay a proposed assessment.  
  • Employers should regularly assess their exposure to penalties under the ACA and develop compliance initiatives to manage that risk.
  • ACA records related to determination of full-time status and offers of affordable, adequate coverage should likely be maintained indefinitely.

We’re Here to Help

For more information about calculating affordability or other benefits compliance topics, contact American Fidelity Administrative Services. AFAS is staffed with professionals who have extensive expertise in providing benefit plan consulting and compliance review. We empower our clients to make smart benefits decisions and deliver tools that save them time, energy, and money.

 

This blog is up to date as of March 2020 and has not been updated for changes in the law, administration or current events.

  • Tags:
  • ACA
  • Compliance

Share:

Related ACA Articles

ACA won’t go away: Are you at risk for being fined?

November 29, 2022

9 minute read

ACA is here to stay. With more and more organizations being fined for missteps in their reporting, being in compliance is more important than ever.

  • Tags:
  • ACA
  • Compliance

Newly released: IRS changed affordability rules for families

October 28, 2022

5 minute read

The eligibility standards for the ACA premium tax credit have changed. Here’s what it means for employers and employees.

  • Tags:
  • ACA
  • Compliance

New ACA affordability may increase financial burden

August 17, 2022

2 minute read

The IRS has announced a significant decrease in the ACA affordability percentage. Does your 2023 medical plan meet the new requirement?

  • Tags:
  • ACA
  • Compliance

Our logo
  • Strategic Partner
  • For Education
  • For the Public Sector
  • For Automotive
  • For Manufacturing
  • For Healthcare
  • Professional Enrollment
  • AFenroll®
  • Benefits Education
  • Total Benefits Solution
  • Culture and Engagement
  • Benefits and Services
  • Resource Library
  • Blog
  • Customer Stories
  • Tools
  • Help Center
  • Forms
  • AFmobile® App

Contact Us

Careers

  • About Us
  • Annual Report
  • Community Giving
  • News Center
  • facebook
  • Youtube
  • linked-in

© 2025 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Accessibility |
  • Cameron Enterprises

*Patient Protection and Affordable Care Act 

ESB-7782-0320