Essential Extension – 30 More Days for ACA Reporting
As discussed in a previous article, the IRS designed Forms 1095 and 1094 to help measure compliance with provisions in the Affordable Care Act (ACA) and assess penalties for noncompliance.
The IRS originally intended for 2017 forms to be due as outlined in Internal Revenue Code (IRC) Sections 6055 and 6056. The due date originally was January 31, 2018, for insurers, self-insured employers, certain other coverage providers and applicable large employers to provide this information to individuals. However, after consulting with stakeholders, the IRS determined a substantial number of employers need additional time to gather and analyze information to prepare Forms 1095-B and 1095-C to be furnished to individuals. Therefore, the IRS released Notice 2018-06, which provides an automatic 30-day extension to March 2, 2018, for providing 2017 health coverage information reporting Forms 1095-B and 1095-C to individuals. This extension also applies to the good-faith transition relief under IRC §6721 and §6722. Because this 30-day extension is granted automatically, the IRS won’t respond to extension requests previously sent by entities prior to the issuance of this notice.
While this notice provides relief of the January 31 deadline, it doesn’t change due dates for providing Forms 1094-B, 1095-B, 1094-C and 1095-C to the IRS. These dates remain February 28, 2018, when paper filing and April 2, 2018, for electronic filers. Employers may request a 30-day extension for filing forms with the IRS by submitting Form 8809.
Employers or other coverage providers that fail to comply with these extended due dates remain subject to penalties for failure to furnish and file on time.
Effect on Individual Taxpayers
Due to the extension, individuals might not receive this form by the time they file their 2017 return. However, taxpayers may rely on other information received from their employer or other coverage provider for purposes of filing their returns, including determining eligibility for the premium tax credit and confirming they had minimum essential coverage. Taxpayers don’t need to amend their returns once they receive Form 1095-C, but should keep the form with their tax records.
For more information or assistance with preparing these forms, visit our ACA IRS Reporting Resource Center or contact your trusted BKD advisor.