The Internal Revenue Service said that the sequestration process could have an impact on the amount that certain small tax-exempt employers receive on the refundable portion of the Small Business Health Care Tax Credit.
The tax credit was included as part of the Affordable Care Act of 2010 as part of an effort to encourage more small businesses to offer health insurance coverage to workers. Budget sequestration was mandated under the Budget Control Act of 2011 in an effort to force lawmakers to reduce the budget deficit. But after the sequester resulted in automatic across-the-board cuts in many defense and non-defense programs, Congress agreed last year to soften the impact.
