The IRS also announced Tuesday that it will defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan on W2s for another year, making reporting by employers optional in 2011.

The Treasury Department and IRS determined this relief necessary to provide employers the time they need to make changes to their payroll systems in preparation for compliance with the new reporting requirement. The IRS will be publishing guidance on the new requirement later this year.

Per PPACA, the purpose of requiring the new reporting is intended to provide employees with greater transparency into overall health care costs.

To read the IRS release, click here.