The IRS yesterday released IRS Notice 2016-4, which extends the due dates for certain 2015 information reporting under the Affordable Care Act (“ACA”). This notice relates to due dates for the 2015 information reporting requirements (i.e., both furnishing to individuals and filing with the IRS) for insurers and self-insuring employers. Specifically, Notice 2016-4 extends the due date for (a) furnishing to individuals the Form 1095-B, Health Coverage, and the Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, and (b) filing with the IRS the Form 1094-B, Transmittal of Health Coverage Information Returns, the Form 1095-B, Health Coverage, the Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. The extension for the Forms 1094-B and Form 1095-B is from February 1, 2016, to March 31, 2016, and the extension for the returns submitted to the IRS is from February 29, 2016 to May 31, 2016 (if not filing electronically) and from March 31, 2016 to June 30, 2016 (if filing electronically). That being said, the IRS indicates it is prepared to accept filings of the information returns on Forms 1094-B, 1095-B, 1094-C, and 1095-C beginning in January 2016 and is encouraging employers and other coverage providers to furnish statements and to file the information returns as soon as they are ready (of course, the IRS always says that). Employers or other coverage providers that do not comply with these extended due dates are subject to penalties imposed under the ACA for failure to timely furnish and file, and so these extended deadlines must be taken seriously.
Final regulations issued by the IRS in 2014 specified the deadlines for information reporting required by the ACA. Generally, those regulations provide persons providing minimum essential coverage to individuals during a calendar year must file with the IRS information returns on or before the following February 28 (March 31 if filed electronically) and must furnish to the individuals identified on the return a written statement on or before January 31 following that calendar year. Since in 2016, the January 31 and February 28 due dates fall on weekend days; in 2016 these two due dates were supposed to February 1 and February 29, respectively (yes, 2016 is a leap year). The IRS designated Form 1094-B and Form 1095-B to meet the requirements of the regulations. In addition, the regulations generally require applicable large employers to file with the IRS information returns on or before February 28 (March 31 if filed electronically) of the year following the calendar year to which it relates and to furnish to full-time employees a written statement on or before January 31 following that calendar year. For this purpose, the IRS designated Form 1094-C and Form 1095-C as transmittal forms to meet the requirements of the regulations. The preambles to the final regulations state that for 2015 coverage the IRS will not impose penalties on reporting entities that can show that they have made good faith efforts to comply with the information reporting requirements, and that this relief applies only to furnishing and filing incorrect or incomplete information and not to a failure to timely furnish or file a statement or return. The preambles also note that generally the penalties may be waived if a failure to timely furnish or file a statement or return is due to reasonable cause (i.e., the reporting entity demonstrates that it acted in a responsible manner and the failure is due to significant mitigating factors or events beyond the reporting entity’s control).
This news, while perhaps a bit tardy, should be very useful for many.