06 Dec IRS Extends Deadlines for Forms 1095-B/C
IRS Extends Furnishing Deadlines for Forms 1095-B/C and Provides Reporting Penalty Relief
The IRS recently published IRS Notice 2019-63 providing relief to applicable large employers (ALEs) and small employers with self-insured coverage subject to Form 1094 and 1095 reporting requirements for the 2019 calendar year. At a high level, this notice allows for the following:
- Extended the deadline for furnishing Forms 1095-B and 1095-C to March 2, 2020 (from January 31, 2020).
- Continued good-faith reporting relief from penalties for incorrect or incomplete information reported on Forms 1094 or 1095.
- Offered new “2019 Section 6055 furnishing relief” allowing employers with self-insured coverage to avoid distributing Forms 1095-B or 1095-C in limited circumstances.
The extension of the furnishing deadline and continuation of good-faith reporting penalty relief are similar to the relief provided for past tax years. Keep in mind that the filing deadlines remain unchanged, as paper filings are due to the IRS by February 28, 2020, and electronic filings are due to the IRS by March 31, 2020. Further, the good-faith reporting relief is not available to employers who do not timely complete their Form 1094/1095 reporting requirements. Instead, employers must show they made reasonable efforts to prepare for reporting, such as gathering and transmitting the necessary data to an agent or testing its ability to transmit information to the IRS.
Finally, with the removal of the individual shared responsibility penalty, the IRS is now offering “2019 Section 6055 furnishing relief” allowing employers with self-insured coverage to avoid distributing a Form 1095 under the following limited circumstances:
- Form 1095-B: The employer must prominently post a notice on its website stating that responsible individuals may receive a copy of their 2019 Form 1095-B upon request. This notice must include an e-mail address and physical address to which the request may be sent, and it must include a contact person’s phone number. The employer also must furnish a 2019 Form 1095-B within 30 days of request.
- Form 1095-C: The same relief and conditions apply, but only for employees who are not full-time for any month and enroll in self-insured coverage for at least one month of the 2019 calendar year. (e.g., part-time employees, former employees enrolled in COBRA coverage).
Employers relying on the new 2019 Section 6055 furnishing relief should be cautious. The IRS only allows the notice regarding the availability of a Form 1095-B or Form 1095-C to be displayed on a website and does not make allowances for other forms of employee communications, such as common breakrooms or company e-mail. Further, the IRS did not clarify on when a notice is considered to be “prominently” displayed on a website.
The 2019 Forms 1094-B/1095-B and 2019 Forms 1094-C/1095-C currently remain in draft form only. Accordingly, the extensions and additional penalty relief will be welcome news for employers subject to these reporting requirements. As the IRS continues enforcing these reporting requirements though, it is imperative that such employers ensure they have a reliable 2019 reporting solution in place now. For more information on the reporting services ETC Companies provides, please contact us at email@example.com