SECTION 6. COMMENTS

The Service is committed to maintaining a dialogue with stakeholders on the ITIN application process, including Form W–7. Comments in response to this notice will be considered carefully by the Service in future revisions to the ITIN application process and Form W–7.

The Service welcomes all comments and suggestions and is particularly interested in comments on the following matters:

1. How can Form W–7 and the instructions be simplified or clarified?

2. The instructions to Form W–7 provide four exceptions to the requirement that a completed tax return be attached to Form W–7. Should these exceptions be modified? Are additional exceptions needed?

3. ITIN applicants may submit a Form W–7 to an acceptance agent. The acceptance agent reviews the applicant's documentation and forwards the completed

January 12, 2004 268 2004-2 I.R.B.

age 65); and (4) may not be claimed as a dependent on another person's tax return.

Q–3. What is a “high-deductible health plan” (HDHP)?

A–3. Generally, an HDHP is a health plan that satisfies certain requirements with respect to deductibles and out-of-pocket expenses. Specifically, for self-only coverage, an HDHP has an annual deductible of at least $1,000 and annual out-of-pocket expenses required to be paid (deductibles, co-payments and other amounts, but not premiums) not exceeding $5,000. For family coverage, an HDHP has an annual deductible of at least $2,000 and annual out-of-pocket expenses required to be paid not exceeding $10,000. In the case of family coverage, a plan is an HDHP only if, under the terms of the plan and without regard to which family member or members incur expenses, no amounts are payable from the HDHP until the family has incurred annual covered medical expenses in excess of the minimum annual deductible. Amounts are indexed for inflation. A plan does not fail to qualify as an HDHP merely because it does not have a deductible (or has a small deductible) for preventive care ( e.g., first dollar coverage for preventive care). However, except for preventive care, a plan may not provide benefits for any year until the deductible for that year is met. See A–4 and A–6 for special rules regarding network plans and plans providing certain types of coverage.

Example (1): A Plan provides coverage for A and his family. The Plan provides for the payment of covered medical expenses of any member of A's family if the member has incurred covered medical expenses during the year in excess of $1,000 even if the family has not incurred covered medical expenses in excess of $2,000. If A incurred covered medical expenses of $1,500 in a year, the Plan would pay $500. Thus, benefits are potentially available under the Plan even if the family's covered medical expenses do not exceed $2,000. Because the Plan provides family coverage with an annual deductible of less than $2,000, the Plan is not an HDHP.

Example (2): Same facts as in example (1), except that the Plan has a $5,000 family deductible and provides payment for covered medical expenses if any member of A's family has incurred covered medical expenses during the year in excess of $2,000. The Plan satisfies the requirements for an HDHP with respect to the deductibles. See A–12 for HSA contribution limits.

Q–4. What are the special rules for determining whether a health plan that is a network plan meets the requirements of an HDHP?

Form W–7 to the Service. What steps, if any, should the Service consider to improve the acceptance agent program?

Comments must be submitted by June 15, 2004. Comments may be submitted electronically to notice.comments@irscounsel.treas.gov . Alternatively, comments may be sent to CC:PA:LPD:PR (Notice 2004–1), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (Notice 2004–1), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC 20224.