IRS Extends Employer Deadline For ACA Reporting Forms

The Internal Revenue Service (IRS) recently announced that it is extending the due date for certain 2016 Affordable Care Act (ACA) reporting forms to be provided to employees.

The deadline for employers to provide Form 1095-B, Health Coverage or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage to employees is March 2, 2017 (extended from January 31, 2017).

However, the deadline for employers to file the 2016 Form 1095 and Form 1094 (transmittal forms) with the IRS was not extended. Employers must file the 2016 Form 1094-B, Form 1095-B, Form 1094-C or Form 1095-C by February 28, 2017, if filing by mail or by March 31, 2017, if filing electronically (required for employers who have to submit 250 or more forms).

In addition, the IRS notice extends “good faith transition relief” for one more year. The IRS will not penalize employers for incorrect or incomplete forms if they can show that they have made “good-faith efforts” to comply with the information-reporting requirements — both for furnishing the reports to individuals and filing with the IRS. According to the IRS, the relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement.

Note: No relief is provided if the employer did not timely file or furnish the reports by the applicable deadlines or did not make a good-faith effort to comply.