IRS Extends ACA Reporting Deadline for Form 1095 to Employees

What It Means to Work in the Insurance IndustryThe Internal Revenue Service (IRS) extended the deadline for employers to deliver the Affordable Care Act’s (ACA) 2016 information reporting forms to employees from January 31, 2017 to March 2, 2017.

The extension only applies for tax year 2016 and for furnishing Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) and Form 1095-B (Health Coverage) to employees.

The deadline for filing Form 1094-B (Transmittal of Health Coverage Information Returns) with copies of Form 1095-B, and Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) with copies of Form 1095-C remains unchanged for 2016 reporting: February 28, 2017 for paper filing and March 31, 2017 for electronic filing.

Employers can request a 30-day extension for filing with the IRS by submitting Form 8809 (Application for Extension of Time to File Information Returns).

Additionally, the IRS has extended its “good-faith transition relief” for 2016 reporting. This states that the IRS won’t penalize employers with incorrect or incomplete forms, including “missing and inaccurate taxpayer identification numbers and dates of birth,” as long as they displayed good-faith efforts to comply with the law. Relief won’t be granted to employers with missing or late filings.

The ACA reporting requirements first went into effect for calendar 2015. These requirements apply to applicable large employers (ALEs) with 50 or more full-time employees, including full-time equivalents (FTEs).

The extension won’t apply to future reporting requirement deadlines and the IRS is ready to start accepting filings starting in January 2017.

For questions or more information about the ACA reporting requirements, contact Jennifer Krog at 508-347-6850 or jkrog@mcgrathinsurance.com.

*This article is written for informational purposes only and should not be construed as providing legal advice.