IRS Extends Due Date for Furnishing Individual Reporting Statements under the Affordable Care Act

In Employee Benefits by Coolidge Wall

On November 18th, the Internal Revenue Service issued Notice 2016-70 which:

  • Extends by 30 days the deadline for providing to employees the 2016 Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage) from January 31, 2017 to March 2, 2017; and
  • Extends certain good faith transition relief from penalties that apply to the 2016 ACA information reporting requirements.

Form 1095-B must be furnished to individuals by insurers, employers with self-insured health plans, and certain other providers of minimum essential coverage. Form 1095-C must be provided by applicable large employers (those with 50 or more full-time employees, including full-time equivalent employees, in the prior year).

The Notice does not extend the deadline for filing with the IRS the 2016 Forms 1094-B, 1095-B, 1094-C, or 1095-C. The due dates for these forms remain February 28, 2017, if filing on paper; or March 31, 2017, if filing electronically. Automatic extensions remain available for these forms.

Also in Notice 2016-70, the IRS has extended its good faith compliance policy for timely furnished and filed 2016 Forms 1095-C and 1094-C that may contain inaccurate or incomplete information. This relief applies only to incorrect or incomplete information reported on the statement or return, and not to a failure to timely furnish or file a statement or return.

Employers or other coverage providers who fail to timely furnish a statement to an individual (Forms 1095-B and 1095-C) or file a required form with the IRS (Forms 1094-B, 1095-B, 1094-C, or 1095-C) should still furnish and file belatedly. Late furnishing/filing will be considered by the IRS when determining whether to lessen a penalty for reasonable cause.

If you have questions about the ACA information reporting requirements, please contact Brent Gambill (937-449-5539) or Edie Crump (937-449-5530).

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