IRS Issues Limited Extension for Employer ACA Reporting Deadlines

Authored by Dannae L. Delano

Nov 21, 2016

The Internal Revenue Service is extending the deadline to provide employees and covered individuals 2016 Affordable Care Act (ACA) information reporting. Notice 2016-70, issued by the IRS last Friday, extended the deadlines for furnishing employees and covered individuals the required forms but did NOT extend the deadlines for filing the required forms with the IRS.

Reporting is still required in 2017 for coverage provided in 2016 by:

  • large employers (50 or more full-time and full-time equivalent employees)
  • and employer sponsors of self-funded plans.

The IRS has now extended the deadline for furnishing employees with the Form 1095-C (Employer Provided Health Insurance Offer and Coverage) or the 2015 Form 1095-B (Health Coverage), as applicable, from Jan. 31, 2017, to March 2, 2017.

The deadlines for filing with the IRS the Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) and Form 1095-Cs or the Form 1094-B (Transmittal of Health Coverage Information Returns) and Form 1095-Bs, as applicable, remain Feb. 28, 2017 (if not filing electronically) and March 31, 2017 (if filing electronically). Any employer filing 250 or more forms must do so electronically. Please note, however, that there is an automatic 30 day extension of the deadlines for filing with the IRS available, provided an extension is filed by the employer on or before the applicable deadline for filing with the IRS.

More importantly, the notice also extends the good faith transition relief to the 2016 information reporting requirements. This means that employers should document their good faith compliance with the reporting requirements because if there are errors, the employer can rely on good faith compliance to avoid penalties. This is welcome lenience from extremely high penalties for noncompliance, but does not apply if an employer fails to file and only applies if a filing employer has errors despite its good faith efforts.

If you have any questions about ACA reporting or any other employee benefits matter, please do not hesitate to contact Dannae Delano.

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