Gen IC: Health Coverage Tax Credit (HCTC) for Eligible Trade Adjustment Assistance (TAA), Alternative TAA (ATAA) and Reemployment TAA (RTAA) Recipients

Attachment A

Health Coverage Tax Credit

Interstate Connection Network (ICON) System Overview & Documentation

1. Data Transmission: State Workforce Agencies (SWAs) will transmit to the Internal Revenue Service (IRS) the required data certifying Trade Adjustment Assistance (TAA), Alternative TAA, and Reemployment TAA (ATAA/RTAA) eligible individuals in the approved file format (Attachment B) through the Interstate Connection (ICON) using the following procedures.

As soon as the SWA recognizes that an individual meets the eligible TAA or ATAA/RTAA recipient criteria for the first time within a given month, the SWAs must transmit the eligible TAA or ATAA/RTAA recipient’s record to the IRS. Each SWA will need to:

• Create a monthly list of eligible TAA and ATAA/RTAA recipients and update the list on a daily basis;

• On the first day of the month, transmit to the IRS the monthly list of individuals determined qualified. On each subsequent day of the month, transmit any changes to the initial monthly list of eligible individuals;

• Program its system to ensure that only those individuals determined as eligible TAA or ATAA/RTAA recipients for the first time within a month are included in the daily transmission to the IRS for that particular month;

• Transmit to the IRS only the header data in the approved file format when there are no individual records for eligible TAA or ATAA/RTAA recipients to transmit; and

• Maintain the monthly listing of eligible TAA and ATAA/RTAA recipients within the state’s document retention policy.

(A diagram is provided on page three of this attachment showing the steps listed above.)

Once an individual is reported eligible for a month, s/he is not reported again for that month unless action occurs which makes the individual ineligible for such month. If an individual is determined to be an eligible TAA or ATAA/RTAA recipient for a particular week that is split between two months, the SWA will submit a record for that individual for both months. To notify the IRS of the appropriate correction to previously reported eligibility status and months, the SWA should use adjustment codes contained in Attachment B to amend the individual’s eligibility status.

Example:

If an individual is determined eligible to receive HCTC retroactively for a period that begins in March and continues into April, the months reported are March and April provided that eligibility has not been previously reported for March or April based on a different week in the month. The individual is reported again for March or April only to report a ‘lost eligibility’ adjustment code, i.e., code 20-24.

2. Issue Resolution: Issues and problems are bound to arise from the information provided by the SWAs to the IRS. SWAs and the IRS will use the IB-13 application on ICON to resolve any issues or problems with the TAA or ATAA/RTAA data submitted by the SWAs. The IB-13 application is a batch mail delivery system using freeform text. It is used to exchange information between parties on ICON. The SWAs and the IRS will follow the procedures listed below to resolve any issues or problems with the data submitted by the SWAs.

• The IRS will notify a SWA through the ICON IB-13 application, of any file(s) that is missing information, or if the SWA-provided TAA or ATAA/RTAA information appears to be incorrect based on other information the IRS has obtained.

• The SWA will respond to the IRS with additional or corrected information about TAA or ATAA/RTAA eligibility information based on the review of state TAA or ATAA/RTAA records.

• The IRS will maintain a log of all requests that it makes to the SWAs and all replies received from the SWAs.

• The SWA will maintain a log of all requests made by the IRS and all replies the SWA provides to the IRS.

• The IRS will request information about TAA or ATAA/RTAA eligibility information from the designated official from the SWA.

A diagram is provided on page four showing the steps listed above to resolve issues / problems with the TAA or ATAA/RTAA data submitted to the IRS.

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