January 23, 2020
ACA Deadline Extended!
Compliance Update: ACA Deadline Extended
On Dec. 2, 2019, the IRS issued Notice 2019-63 which extended the deadline to furnish Forms 1095-C (and B) to employees from January 31, 2020 to March 2, 2020. The deadline to file with the IRS did not change and remains February 28, 2020 for paper filings (March 31st if filing electronically). This notice also provided extension of the “Good-Faith” transition relief which protects employers from penalties that result from ACA reporting errors. This does not mean that the IRS will not charge penalties for late filings or for not filing electronically (when required). In fact, the IRS has started issuing penalty notices to employers that either filed late or did not file electronically (when required) for the 2017 tax year.
Because the individual mandate penalty was reduced to zero beginning in 2019, individuals no longer need a 1095-B in order to calculate his or her individual federal tax liability. As a result, the IRS will not assess a penalty under Section 6722 against reporting entities for failing to furnish a Form 1095-B to responsible individuals where the below conditions are met. Please keep in mind that in the past insurance carriers generate a 1095-B for any employee (or dependent) that is enrolled in Fully Insured medical coverage. Employers that offer Self – Insured plans that are also not considered an ALE (Applicable Large employer) were required to send out a Form 1095-B. This change does NOT apply to ALE’s (Applicable Large Employers). Employers that are considered ALE’s are still required to furnish 1095-C forms to employees.
Conditions in which the IRS will not assess a penalty for not issuing a 1095-B Form:
- The reporting entity prominently posts a notice on its website stating that responsible individuals may receive a copy of their 2019 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions; and
- The reporting entity furnishes a 2019 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received.