ACA excise tax provisions challenged in Texas federal court (1)

A Texas-based cleaning company is suing the U.S. government, challenging a U.S. Department of Health and Human Services regulation, arguing the rule deprives employers of due process under the Affordable Care Act.

The ACA’s employer-shared responsibility provisions require certain large employers to either offer their employees a minimum level of affordable insurance or pay excise taxes to the IRS. Due process is a statutory requirement for imposing these excise tax payments, and the IRS improperly relied on a provision that failed to implement that requirement, the Faulk Co. said in a June 28 lawsuit. …