The IRS held hearings this week on PPACA rules that aren't likely to end well for employers.

The question before the agency: Should companies be forced to collect and report the birth dates and Social Security numbers of employees' children?

The Employers for Flexibility in Health Care Coalition is hoping the IRS will back off.

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Unfortunately, there's hardly any chance of that, despite the fact that E-FLEX is a coalition of trade associations and businesses that employ millions of Americans in the restaurant, retail, hospitality, supermarket, construction, temporary staffing and other service-related industries.

Business interests have been known to cry wolf every so often in their fight against over-zealous regulators.

Not this time. This time, it's a legitimate cry for relief.

The coalition's objections are focused on Section 6056 of the IRS code, which requires large employers to provide a list of full-time employees, the coverage offered to each, by month, and the cost of self-only coverage.

But, wait, it doesn't stop there.

Section 6055 also will require insurers and self-insuring employers to detail the months individuals were covered by health plans. The IRS will use this information to verify compliance with the health care law's individual and employer mandates.

In short, Section 6056 is a huge paperwork headache, a government mandate that, in fact, really does threaten to overwhelm already over-extended employers.

To its credit, the E-Flex Coalition is doing more than just complaining about the rules. It's offered what sounds like a practical solution.

Instead of collecting data on every last employee, it's suggested employers could do so only on workers getting a federal tax credit to subsidize their healthcare coverage costs.

"A less expansive approach to information reporting can achieve the same ends with fewer burdens," E-FLEX said in a Nov. 6 comment letter.

As reasonable as that sounds, what are the odds the IRS might listen? Not great.

"It's a huge ask," said Vanessa Scott, a partner at law firm Sutherland Asbill & Brennan, of the requests. "The IRS needs as much information as possible about everyone. … Without it, the IRS is at a serious disadvantage."

The Obama administration has given employers plenty of reasons to dislike the PPACA. It also has provided plenty of ammunition to Republicans who'd like to see the repeal of Obamacare.

Employers aren't asking for much in this instance. The administration should do itself a favor and give in on this one.

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