The IRS, in Notice 2015-17, provided limited relief from the draconian $100 per day per participant penalties under IRC §4980D for health insurance reimbursement plans that had been addressed in Notice 2013-54. In particular, the notice provides:
- Transition relief for employers that are not applicable large employers (employers with 50 or more employees). Relief is granted for 2014 and for January 1 through June 30, 2015; and
- Relief for S corporations that pay for or reimburse premiums for individual health insurance coverage for 2% shareholders as addressed in Notice 2008-1. The relief period is indefinite and the IRS states that taxpayers may continue to rely on Notice 2008-1 "unless and until additional guidance" is provided.