Health Plan Taxes: Internal Revenue Code Section “4890D” or “4980D”?

This morning I am finishing an article for NJCPA on health plan excise taxes under IRC 4980D. This is a new code section brought about by the Affordable Care Act. 2015 is its first year of implementation for small businesses. Tax liability can be substantial for those caught unaware, so this id the reason for a recent flurry of media coverage and reporting.

In the course of my work on the article I found a number of references to “4890D”. Some of these references are published by normally reputable sources.

This appears to be simply an error of transposing the two digits “8” and “9”. There is no Internal Revenue Code section 4890D.

It turns out that I made the same mistake myself in a Facebook post. It must be contagious.

I have a growing list of articles about how to manage tax liability under the new IRC 4980D. See:

The new article is expected to be published in the January issue of NJ CPA Magazine.


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