Federal Law Alert: IRS Extends Due Date to Distribute ACA Form 1095-C / Form 1095-B to Employees

by Mammoth Team on November 23, 2016

ACA Forms Update

The IRS has extended the deadline for applicable large employers (those with 50 or more full-time or full-time equivalent employees) to distribute Form 1095-C to employees from January 31, 2017 to March 2, 2017.

The extension also applies to small employers with self-funded plans, who now have until March 2 to distribute Form 1095-B to employees.

The distribution of this form is one part of the reporting requirements under the Affordable Care Act for employers who are subject to the Employer Mandate. The additional 30 days gives employers more time to gather the relevant information and prepare the forms.

This extension applies only to the forms distributed to individuals. Employers must still file the 2016 Forms 1094-B and 1095-B (for small employers with self-funded plans) or Forms 1094-C and 1095-C (for applicable large employers) with the IRS by February 28, 2017, for paper filing, or March 31, 2017, if filing electronically. Employers with fewer than 50 full-time or full-time equivalent employees are not subject to these reporting requirements or to the ACA mandate itself.

The IRS has also extended “Good Faith Transition Relief” to the 2016 reporting year. Employers who can show they made good faith efforts to comply with the information-reporting requirements will not be penalized for incorrect or incomplete information reported for the 2016 tax year.

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Topics: Compliance, Federal Law Alert

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