IRS Gives Game Plan for COBRA Audits

COBRA is a law with a double bite:  both the DOL and the IRS routinely conduct COBRA audits and issue penalties. The IRS recently published a checklist of what it examines in these audits.

The IRS document is officially called "Audit Technique" and Tax Law to Examine COBRA Cases (Continuation of Employee Health Care Coverage).” This audit technique guide describes the IRS’ examination procedures, how it calculates the excise tax for noncompliance, the major requirements for COBRA and some key definitions like the terms group health plan, qualified beneficiary, and qualifying event.

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