42 CFR § 411.130 - Referral to Internal Revenue Service (IRS).
---
identifier: "/us/cfr/t42/s411.130"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 411.130 - Referral to Internal Revenue Service (IRS)."
title_number: 42
title_name: "Public Health"
section_number: "411.130"
section_name: "Referral to Internal Revenue Service (IRS)."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "411"
part_name: "EXCLUSIONS FROM MEDICARE AND LIMITATIONS ON MEDICARE PAYMENT"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302, 1395w-101 through 1395w-152, 1395hh, and 1395nn."
regulatory_source: "54 FR 41734, Oct. 11, 1989, unless otherwise noted."
cfr_part: "411"
---
# 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 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.