The IRS has issued proposed regulations, which if finalized, would extend the annual furnishing deadlines for Internal Revenue Code (IRC) Sections 6055 and 6056 reporting under the Affordable Care Act (ACA) permanently. IRC Sections 6055 and 6056 outline reporting requirements for employers and providers to confirm whether individuals have acquired minimum essential coverage during the applicable plan year. Under IRC Section 6055, Forms 1094-B and 1095-B must be completed by providers of minimum essential coverage for all covered individuals. Applicable Large Employers can satisfy the reporting requirements under both Section 6055 and 6056 by filing Forms 1094-C and 1095-C. Filers must also furnish a 1095-B to each Responsible Individual or 1095-C statement to each full-time employee.
Since 2015, the IRS has provided an extension to the due date for furnishment of Forms 1095-B and 1095-C to individuals. Under the proposed regulations, a 30-day extension will be automatic for employers, health insurance issuers and government agencies to provide statements to individuals, extending the due date from January 31, 2022, to March 2, 2022. The permanent extension will also remove the ability for employers to request an extension for “good cause.” Note: if the deadline falls on a weekend or a legal holiday, the forms will be due the next business day. The proposed rules do not change the due dates for submitting the forms to the IRS, which remain February 28th or March 31st (if filing electronically).
Employers should also be aware that there would no longer be any good faith relief from penalties under Sections 6721 and 6722 in the event of an incorrect or incomplete reporting for Forms 1094-B, 1095-B, 1094-C and 1095-C for tax year 2021 and all future tax years. However, the proposed regulations may provide some relief to employers required to provide Form 1095-B to covered individuals. In certain situations, employers may not be penalized under IRC Section 6722 for failure to furnish if two requirements are satisfied: (1) the reporting entity prominently posts a notice on its website stating individuals may receive a copy of the 2021 Form 1095-B upon request, and (2) provide Form 1095-B within 30 days of receiving the request. Such relief is not extended to Form 1095-C.
The IRS proposed regulations are likely to pass and will be applicable to the upcoming 2021 ACA filing season. We will provide updates as they become available.
The IRS has released final 2021 versions of Forms 1094-C, 1095-C, 1094-B and 1095-B
If you have any questions or need any guidance on the above, please reach out to your account team or email us at icomply@ibpllc.com.
