Per Notice 2016-4, the IRS has extended the following due dates for the reporting requirements under the Affordable Care Act (ACA).
Section 6055 requires health insurance issuers, self-insuring employers, and other insurance providers to file and furnish annual information returns and statements regarding coverage provided. Generally this information is reported on Form 1095-B or 1095-C, Part III. Section 6056 requires applicable large employers (ALEs) to file and furnish annual information returns (Form 1095-C) relating to the health insurance that the employer offers to its full-time employees.
Notice 2016-4 extends the reporting due dates under the ACA as follows:
- 2015 Form 1095-B and Form 1095-C furnished to individuals: Deadline is extended to Mar. 31, 2016. (Previously the deadline had been Feb. 1, 2016.)
- 2015 Form 1094-B and 1095-B, and 2015 Form 1094-C and 1095-C:
- If filed with IRS by paper: Deadline extended to May 31, 2016. (Previously, the deadline had been Feb. 29, 2016.);
- If filed with the IRS electronically: Deadline is extended to June 30, 2016. (Previously, the deadline had been March 31, 2016.)
Organizations that do not comply with these new extended due dates are subject to the penalties under Code Sec. 6722 and Code Sec. 6721 for failure to timely furnish and file applicable reports.
These extensions apply automatically to all filers and are more generous than the originally permitted extensions of time to file or furnish 2015 returns under the ACA. In view of these extended due dates, it is expected that no further extensions under the prior extension provisions will be granted by the IRS.
Employers that wanted to outsource the preparation of the new forms but missed the sign-up deadlines imposed by many third-party preparers may want to circle back to see if outsourcing might now be possible due to the extended reporting deadline.
Notice 2016-4 also provides guidance to individuals who may not receive Form 1095-C by the time they file their 2015 tax returns. Some employees enrolled in coverage through the Marketplace may not have enough information to determine the affordability of the coverage offered by their employer without Form 1095-C.
For 2015 only, individuals may rely on other information from employers about their offers of coverage to determine eligibility for the premium tax credit when filing their income tax returns. Individuals can request information from their employers such as a summary statement detailing the information required for Form 1095-C. Individuals in this situation will specifically want to request information regarding the affordability, or lack of affordability, of the coverage offered by the employer. Additionally, for 2015 only, employees who have filed their individual income tax returns before receiving Forms 1095-C do not need to amend their individual returns when they actually receive their forms.
Although, these new dates grant extra time for reporting, if employers have not already done so, they should take action steps so that they are prepared to file the required forms timely.