New Deadline for ACA Form 1095-B/C
Some may call it a miracle… others may call it an act of mercy. Either way, the IRS gave out a little holiday cheer to employers. On December 22, 2017, the IRS extended the due date for employers and providers to issue Health Coverage Forms to Individuals in 2018.
The new deadline to distribute 2017 Forms 1095-B/C has been moved from January 31, 2018 to March 2, 2018.
No extension has been granted for filing forms with the IRS. If filing by paper, the Forms 1094/1095 will be due February 28, 2018. If filing electronically, forms will be due April 2, 2018.
Who’s required to file?
Insurers, self-insuring employers, other coverage providers, and applicable large employers must furnish statements to employees or covered individuals regarding the health care coverage offered to them. Individuals may use this information to determine whether, for each month of the calendar year, they may claim the premium tax credit on their individual income tax returns.
How do you file individual returns prior to March 2nd?
Due to the extension, taxpayers may not receive their forms by the time they are ready to file their 2017 tax return. The IRS has confirmed that individuals may file taxes without having received their Forms and may rely on other information received from their employer or coverage provider, for example, a confirmation statement from their employer that the employer provided minimum essential coverage. When the individual does receive their Form 1095, they should retain the statement with their tax records.
What else should I know?
The IRS has also extended the Good Faith Transition Relief that was made available to filers last year. The IRS will not impose penalties on reporting entities that can show they have made good faith efforts to comply with the information reporting requirement.
Notice 2018-06 indicates that, while failure to furnish and file the Forms on a timely basis may subject employers and other coverage providers to penalties, such entities should still attempt to furnish and file even after the applicable due date as the IRS will take such action into consideration when determining whether to abate penalties.
Need more information?
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