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January 2, 2018

HRB 136 - IRS Delays Certain ACA Disclosures (article)

HRB 136 - IRS Delays Certain ACA Disclosures
Released January 2, 2018 I Download as a PDF

The IRS issued guidance (Notice 2018-06) on December 22, 2017 announcing a delay in providing the Form 1095-B and Form 1095-C disclosure statements to individuals; these statements are generally due by January 31st following the reporting year.


As background, the Forms 1094 and 1095 are used to satisfy the IRC Section 6055 and 6056 reporting requirements. The Form 1094-B and 1095 B-series is used for reporting minimum essential coverage (MEC) by insurers and sponsors of self-funded plans.  The Form 1094-C and 1095-C series is used for reporting employer provided coverage by an applicable large employer subject to the Affordable Care Act’s shared responsibility requirement.


Notice 2018-06 provides for an extension for the due date for furnishing benefit statements (Form 1095-B and Form 1095-C) to individuals from January 31, 2018 to March 2, 2018.  Due to this extension, there will be no further 30-day automatic extension available.  Similar to prior disclosure delays issued by the IRS, the guidance provides that taxpayers can file their personal income tax return without having to attach the relevant Form 1095 to their tax returns. 


Important to note that the filing due dates of the 2017 Forms 1094-B and 1095-B, and the 2017 Forms 1094-C and 1095-C reports to the IRS have not been extended.  These reports must be submitted to the IRS no later than February 28, 2018; or by April 2, 2018, if filing electronically.  An automatic 30-day extension of time to file the 1094/1095 forms remains available by submitting the Form 8809 with the IRS on or before the filing due date.


In addition, this guidance reinstates the good faith compliance standard that was allowed in prior years.  This means that the potential IRS-imposed penalties for failure to comply with the reporting and disclosure requirements could be reduced or waived, even if incorrect or incomplete information is reported on the return or statement, such as missing and inaccurate taxpayer identification numbers and dates of birth, as long as the responsible reporting entity makes a good faith effort to complete the required forms accurately and timely. 


About the Author: Karen R. McLeese is Vice President of Employee Benefit Regulatory Affairs for CBIZ Benefits & Insurance Services, Inc., a division of CBIZ, Inc. She serves as in-house counsel, with particular emphasis on monitoring and interpreting state and federal employee benefits law. Ms. McLeese is based in the CBIZ Kansas City office.

The information contained herein is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. The information contained herein is provided as general guidance and may be affected by changes in law or regulation. The information contained herein is not intended to replace or substitute for accounting or other professional advice. Attorneys or tax advisors must be consulted for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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