Travis Software Official Blog

Last week, Travis reported that the IRS released informal guidance regarding the proper procedure to claim credit for an ARRA premium subsidy on IRS Form 941. Through an email authored by a senior IRS Analyst, the IRS clarified that the ability to claim credit for the COBRA premium subsidy is based on the date that the COBRA premium payment is received, not the time period to which such credit is applied.

The following document will discuss how to import the ARRA Model Notice into the Letter Writer for Letters 79 – 81.

A senior tax analyst for the Internal Revenue Service (“IRS”) recently clarified how to properly claim the payroll tax credit on Form 941 for the ARRA premium subsidy. Through an informal announcement, the IRS agent stated that the ability to claim the credit for the premium subsidy is based on the year in which the payment is received rather than the year the payment is applied. The agent further stated that the date on which the employer is informed of a payment received is not at issue, but only when the payment was actually received.

On January 11, 2010, the U. S. Department of Labor (“DOL”) released an updated Fact Sheet and FAQs for Employees, which signals that the DOL is developing updated model notices to reflect the Department of Defense Appropriations Act, 2010 (“2010 DOD Act”).

Users of both TravisCobra and WebCOBRA.com are now able to use new releases of these systems reflecting the changes to the COBRA law enacted December 22nd as part of the Department of Defense Appropriation Act 2010.