Compensation & Benefits Alert - December 2015

December 2015

IRS Extends Deadlines for Affordable Care Act Reporting Forms 1094-B, 1095-B,  1094-C, and 1095-C


Summary

The Internal Revenue Service (IRS) released Notice 2016-4 on December 28, 2015, granting an automatic extension of the due dates for the distribution and filing deadlines for the 2015 Forms 1094 and 1095 for all those required to file under the Affordable Care Act (ACA).

The extended due dates are:
  • Forms 1095-B/1095-C that must be provided to individuals is extended from February 1, 2016, to March 31, 2016
  • Forms 1094-B with copies of Forms 1095-B; and 1094-C with copies of Forms 1095-C that must be provided to the IRS is extended as follows
    • from February 29, 2016, to March 31, 2016, if not electronically filed
    • from March 31, 2016, to June 30, 2016,  if electronically filed
Notice 2016-4 also provides guidance to individuals who might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns.


Discussion

Extension of Reporting Requirements
Under Internal Revenue Code (IRC) Section 6055, health coverage providers are required to file with the IRS and distribute to covered individuals, forms showing the months in which the individuals were covered by “minimum essential coverage.”  Under IRC Section 6056, applicable large employers (generally, those with 50 or more full-time employees and equivalents) are required to file with the IRS and distribute to employees, forms containing detailed information regarding offers of, and enrollment in, health coverage.  The chart below shows the new deadlines.
 
  Old Deadline New Deadline
Deadline to Distribute Forms to Employees and Covered Individuals 
 
Feb. 1, 2016 March 31, 2016
Deadline to File with the IRS Feb. 29, 2016 (paper)

March 31, 2016 (electronic)
May 31, 2016

June 30, 2016

Further, the IRS informed that, due to the new extended deadlines, no additional automatic or permissive extensions will be granted.

While the Notice states that IRS is ready to receive the forms, IRS understands that some employers, insurers, and other providers of the minimum essential coverage will need additional time to gather, analyze and report the required information.   Employers and other coverage providers are encouraged to furnish statements and file the information returns as soon as they are ready.

Guidance to Individuals
Notice 2016-4 also provides guidance to individuals who might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns.

For 2015 only, individuals who rely upon other information received from employers about their offers of coverage for purposes of determining eligibility for the premium tax credit when filing their income tax returns need not amend their returns once they receive their Forms 1095-C or any corrected Forms 1095-C. Individuals need not send this information to IRS when filing their returns but should keep it with their tax records.

Similarly, some individual taxpayers may be affected by the extension of the due date for providers of minimum essential coverage to furnish information under IRC Section 6055 on either Form 1095-B or Form 1095-C. Because, as a result of the extension, individuals may not have received this information before they file their income tax returns, for 2015 only, individuals who rely upon other information received from their coverage providers about their coverage for purposes of filing their returns need not amend their returns once they receive the Form 1095-B or Form 1095-C or any corrections. Individuals need not send this information to the Service when filing their returns but should keep it with their tax records.

The Notice also discusses the procedures that can be used by individual taxpayers who may need the information to claim certain tax credits.

For questions related to matters discussed above, please contact one of the following practice leaders:
 
Kim Flett
Sr. Director, National Tax
Compensation & Benefits

Carl Toppin
Sr. Manager, National Tax
Compensation & Benefits

Joan Vines
Sr. Director, National Tax
Compensation & Benefits


Linda Baker
Sr. Manager, National Tax
Compensation & Benefits