The Internal Revenue Service (IRS) recently released an advance copy of Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to help pay for their Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage. Employers may then claim a credit on their Form 941 to be reimbursed for the assistance provided. Vision Payroll provided an overview of Notice 2009-27 when it was first issued. Today we will be reviewing Additional Issues under Notice 2009-27.

The IRS indicated in Notice 2009-27 that it is aware of additional issues not addressed in Notice 2009-27. The IRS and the US Department of the Treasury are still considering these issues and may issue future guidance on them.

This concludes our summary of Notice 2009-27. Contact Vision Payroll if you have any questions on Notice 2009-27.