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IRS Issues Letters to Affirm Federal Tax Treatment of Domestic Partner Health Benefits

On May 5, 2016, the IRS released two informational letters to explain the federal tax treatment of employer-provided health coverage for domestic partners of employees. Neither the position of the IRS, nor the law has changed. These letters re-confirm that employers may not exclude employer-provided health coverage from an employee’s gross income for domestic partner coverage unless the domestic partner is the employee’s tax dependent.


You may read letter 2016-0008 by clicking here.  Letter 2016-0012 may be found here.


If you have any questions, please contact your Client Solutions team.


Compliance Quarterly is being provided as an informational tool. It is recommended that plans consult with their own experts or counsel to review all applicable federal and state legal requirements that may apply to their group health plan. By providing this publication and any attachments, Meritain Health is not exercising discretionary authority over the plan and is not assuming a plan fiduciary role, nor is Meritain Health providing legal advice.