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Indiana and 15 School Corporations Sue IRS

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The State of Indiana and 15 school corporations filed a lawsuit today against the IRS, challenging a new IRS regulation that imposes the employer mandate requirements of the Affordable Care Act onto state and local governments. Indiana Attorney General Greg Zoeller contends the Affordable Care Act as passed by Congress does not allow financial penalties in states that did not create their own health insurance exchanges and that the financial penalties, which are based on the total number of employees, cannot be applied to government employees.
Joining the State as co-plaintiffs are 15 Indiana school corporations:
• Metropolitan School District of Martinsville, Martinsville, Ind.
• Perry Central Community Schools, Leopold, Ind.
• Benton Community School Corporation, Fowler, Ind.
• Community School Corporation of Eastern Hancock County, Charlottesville, Ind.
• John Glenn School Corporation, Walkerton, Ind.
• Monroe-Gregg School District, Monrovia, Ind.
• Mooresville Consolidated School Corporation, Mooresville, Ind.
• North Lawrence Community Schools, Bedford, Ind.
• Northwestern Consolidated School District of Shelby County, Fairland, Ind.
• Shelbyville Central Schools, Shelbyville, Ind.
• Southwest Parke Community School Corporation, Montezuma, Ind.
• Vincennes Community School Corporation, Vincennes, Ind.
• Madison Consolidated Schools, Madison, Ind.
• South Henry School Corporation, Straughn, Ind.
• Southwestern Jefferson County Consolidated School Corporation, Hanover, Ind.
As political subdivisions of the State, school corporations are faced with reducing the hours of their part-time employees in order to avoid the financial penalties of the IRS regulation under the employer mandate.


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