Affordable Care Act reporting extended from January 31 to March 2

IRS grants another month to prepare Form 1095-B or 1095-C

Posted December 28, 2017

On December 22nd, the Internal Revenue Service (IRS) issued an extension of the due date for reporting offers of health coverage made during the 2017 calendar year. Previously, insurers and employers had until January 31, 2018, to provide individuals with either Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. That deadline is now March 2, 2018.

The IRS determined that a substantial number of employers, insurers, and other providers of coverage need additional time to prepare the 2017 forms. Self-insured employers with fewer than 50 full-time employees must complete and provide the 1095-B to employees and their dependents, while employers with 50 or more full-time employees must complete and provide the 1095-C to employees and their dependents.

The IRS also extended the good-faith relief from certain penalties for errors on the 2017 forms. Specifically, employers or other reporting entities that can show they made good-faith efforts to comply with the reporting requirements (both for furnishing to individuals and for filing with the IRS) will not be penalized for incorrect or incomplete information on the forms. This applies to missing or inaccurate taxpayer identification numbers and dates of birth, as well as other information required. However, no relief will be given for failing to file by the due date, as extended.

In determining good faith, the IRS will take into account whether an employer or other coverage provider made reasonable efforts to prepare for reporting and furnishing the information to employees and covered individuals, such as gathering and transmitting the necessary data to an agent to prepare for submission to the IRS, or testing its ability to transmit information to the IRS. In addition, the IRS will take into account the extent to which the employer or other coverage provider is taking steps to ensure that it will be able to comply with the reporting requirements for 2018.

Written by Edwin Zalewski of J. J. Keller & Associates, Inc.

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