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IRS Extends Distribution -but NOT Filing- Deadline for ACA Reporting Returns

The IRS has announced that employers have more time to distribute 2018 health coverage information returns to employees. However, the deadline for filing these forms with the IRS has not changed.

Specifically, IRS Notice 2018-94 extends the due date for furnishing to individuals the 2018 Form 1095-B, Health Coverage, and the 2018 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2019, to March 4, 2019. Note, however, that Notice 2018-94 does not extend the due date for filing with the IRS 2018 Forms 1094-B, 1095-B, 1094-C, or 1095-C. That due date remains February 28, 2019, if not filing electronically, or April 1, 2019, if filing electronically.

The IRS realizes that some individuals may not receive their Form 1095-B or Form 1095-C by the time they are ready to file their 2018 tax return. Taxpayers may rely on other information received from their employer for purposes of filing their returns, including determining eligibility for the premium tax credit and confirming that they had minimum essential coverage. The IRS is asking employers to distribute 2018 forms as soon as they are able.

Notice 2018-94 also extends transition relief from penalties under sections 6721 and 6722 to employers that can show that they have made a good-faith effort to comply with the reporting requirements for 2018 (both for furnishing to individuals and for filing with the IRS) for incorrect or incomplete information reported on the return or statement. This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. No relief is provided in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due dates (as extended under the rules described above).

Any questions about ACA reporting and compliance?  Give us a call 724.349.1919.