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State and 15 Schools Sue IRS to Block Impact of Employer Mandate

The State of Indiana and 15 school corporations, including the Vincennes School Corporation, filed a lawsuit Tuesday against the Internal Revenue Service challenging an IRS regulation imposing the costly “employer mandate” requirements of the Affordable Care Act onto state and local governments, including school corporations.

Attorney General Greg Zoeller says the ACA improperly regulates sovereign states and does not authorize the IRS to do what it is doing in treating the State as a taxable entity. 

Zoeller and the school districts contend the Affordable Care Act ,as passed by Congress, does not allow financial penalties in states that did not create their own health insurance exchanges; and that the financial penalties – which are based on the total number of employees – cannot be applied to government employers.

Filed Under :  
Topics : Business_FinanceLabor
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Locations : Indiana
People : Greg Zoeller