---
kind: "section"
citation: "42 C.F.R. § 411.130"
title: "42"
number: "411.130"
heading: "Referral to Internal Revenue Service (IRS)."
url: "https://uscodex.org/cfr/42/411.130"
---

# §411.130. Referral to Internal Revenue Service (IRS).

- (a) **CMS responsibility.** After CMS determines that a plan has been a nonconforming GHP in a particular year, it refers its determination to the IRS, but only after the parties have exhausted all CMS appeal rights with respect to the determination.
- (b) **IRS responsibility.** The IRS administers [section 5000](/cfr/42/5000.md) of the IRC, which imposes a tax on employers (other than governmental entities) and employee organizations that contribute to a nonconforming GHP. The tax is equal to 25 percent of the employer's or employee organization's expenses, incurred during the calendar year in which the plan is a nonconforming GHP, for each GHP, both conforming and nonconforming, to which the employer or employee organization contributes.

## Notes

### Source

Source: 60 FR 45362, Aug. 31, 1995, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1395w-101 through 1395w-152, 1395hh, and 1395nn.

### Source

Source: 54 FR 41734, Oct. 11, 1989, unless otherwise noted.