U.S. District Court Upholds IRS Authority to Enforce Employer Shared Responsibility Payment

The U.S. District Court for the Southern District of Florida held that the IRS had authority to assess the Employer Shared Responsibility Payment (ESRP) against the taxpayer for tax year 2018, granting summary judgment to the government. The taxpayer, a company that failed to offer health insurance to employees for part of 2018, argued the IRS lacked authority to assess the ESRP because it did not receive a proper certification from HHS as required by IRC §4980H. The court rejected this argument, concluding that the IRS, not HHS, has authority to issue the certification required by §4980H. The court held ...