07 Oct Final Forms Released For 2018 Reporting Year
The IRS has now released final Forms 1094-B and 1095-B (“B forms”), 1094-C and 1095-C (“C forms”), and their related instructions for the 2018 reporting year. As a reminder, Applicable Large Employers (ALEs) are responsible for distributing and filing C forms; while, minimum essential coverage (MEC) providers, including non-ALEs sponsoring self-insured coverage, are responsible for distributing and filing B forms.
The 2018 forms and instructions are largely unchanged from 2017. Importantly, the plan start month box on Form 1095-C remains optional for 2018, and the 250-return threshold that triggers mandatory electronic filing with the IRS continues to apply separately for each type of return. Earlier this year, the IRS proposed regulations that would require aggregation of most information returns (Forms 1095, W-2, and 1099 series) when determining the 250-return threshold for mandatory electronic filing; but, the IRS has not finalized these proposed rules, and they will not apply for the 2018 reporting year.
The deadline to furnish a Form 1095-B or 1095-C to individuals is January 31, 2019, and the deadline to file the B or C forms with the IRS is February 28, 2019, if filing on paper, and April 1, 2019, if filing electronically. For employers who fail to meet these deadlines for the 2018 tax year, or otherwise fail to furnish or file correct forms, the IRS may impose a $270 per form penalty to which the reporting failure relates (up from $260 per form penalty in the 2017 tax year). In past reporting years, the IRS has provided extensions of the reporting deadlines and good faith penalty relief related to reporting errors, but there is no indication that the IRS has the same plans for the 2018 reporting year.
Finally, given the recent uptick in IRS enforcement efforts for ALEs, it is critical that these employers ensure they are prepared to meet their 2018 C form reporting requirements. Specifically, the IRS has been sending Letter 5699 to suspected ALEs for the 2015 and 2016 tax years that failed to file C forms with the IRS. Further, the IRS has been sending Letter 226J to ALEs for the 2015 tax year proposing employer shared responsibility penalties based, in part, on how ALEs completed their C forms, and they are expected to begin sending Letter 226J for the 2016 tax year in the coming weeks.
The 2018 final forms and instructions are available below:
- Form 1094-B: https://www.irs.gov/pub/irs-pdf/f1094b.pdf
- Form 1095-B: https://www.irs.gov/pub/irs-pdf/f1095b.pdf
- Instructions for Forms 1094-B and 1095-B: https://www.irs.gov/pub/irs-pdf/i109495b.pdf
- Form 1094-C: https://www.irs.gov/pub/irs-pdf/f1094c.pdf
- Form 1095-C: https://www.irs.gov/pub/irs-pdf/f1095c.pdf
- Instructions for Forms 1094-C and 1095-C: https://www.irs.gov/pub/irs-pdf/i109495c.pdf