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24 more school corps join IRS lawsuit on employer mandate

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Twenty-four additional school corporations have joined the lawsuit filed in October by the state of Indiana and 15 school corporations against the Internal Revenue Service challenging the tax penalties that could be imposed in 2015 under the “employer mandate” of the Affordable Care Act.

The lawsuit challenges new IRS regulations implemented under the new health care law and the authority of the federal government to impose the employer mandate on the state and Indiana public school corporations. The mandate declares that applicable large employers are required to offer full-time employees health insurance.

If large employers do not meet that requirement and workers then receive federal subsidies to get health insurance coverage, the employers may be subject to large financial penalties – up to $2,000 per employee for all full-time employees in the organization.

“It is unprecedented in the history of the United States that 39 public schools have joined together in a single lawsuit against the IRS. The significant participation of Indiana public schools in this lawsuit underscores the debilitating impact that the employer penalties are having upon public education,” said Jim Hamilton, an attorney at Bose McKinney & Evans LLP representing the public schools.  “All Indiana public school corporations provide comprehensive health insurance coverage to most of their employees. However, the practical reality is that most Indiana public school corporations do not have the financial resources to provide affordable, minimum value coverage to all employees who work in excess of 30 hours of service per week.”

Indiana Attorney General Greg Zoeller, who represents the state in the lawsuit, called the IRS tax penalties “draconian.”

“The objective of this case is to defend fundamental state authority to structure our government workforce to provide services; and individuals’ access to health insurance never has been the focus of the suit,” Zoeller said. "Our State should be protected as is constitutionally guaranteed from federal government overreach under our American system of federalism, and the participation of so many school corporations in the challenge reflects mutual concern that this principle has been undermined by the IRS’s actions.”

The amended lawsuit seeks an injunction blocking the IRS and other federal agencies from applying the regulation and penalties against the school corporations and the state as government employees. The plaintiffs also want the federal court to issue a declaratory judgment finding the IRS regulations as applied to the state government and schools unconstitutional and void under the 10th Amendment.

The school corporations in the lawsuit come from throughout the state and include the Charles A. Beard Memorial School Corp. in Knightstown; Salem Community Schools in Salem; and Mooresville Consolidated School Corp. in Mooresville.

The lawsuit is pending in U.S. District Court for the Southern District of Indiana. No response has been filed yet by the federal defendants, which include Health and Human Services Secretary Kathleen Sebelius and the U.S. Department of Labor.

 

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  1. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  2. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  3. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

  4. "The commission will review applications and interview qualified candidates in March and April." Riiiiiight. Would that be the same vaulted process that brought us this result done by "qualified candidates"? http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774 Perhaps a lottery system more like the draft would be better? And let us not limit it to Indiana attorneys so as to give the untainted a fighting chance?

  5. Steal a little, and they put you in jail. Steal a lot, and they make you king. Bob Dylan ala Samuel Johnson. I had a very similar experience trying to hold due process trampling bureaucrats responsible under the law. Consider this quote and commentary:"'When the president does it, that means it is not illegal,' [Richard] Nixon told his interviewer. Those words were largely seen by the American public -- which continued to hold the ex-president in low esteem -- as a symbol of his unbowed arrogance. Most citizens still wanted to believe that no American citizen, not even the president, is above the law." BWHaahaaahaaa!!!! http://www.philly.com/philly/blogs/attytood/When-the-president-does-it-that-means-it-is-not-illegal.html

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