The Internal Revenue Service is extending the due dates for some information reporting requirements under the Affordable Care Act.
Notice 2016-70 extends the deadline for certain information reporting requirements for 2016 imposed by the Patient Protection and Affordable Care Act under section 6055 and 6056 of the Tax Code.
The notice specifically extends the due date for furnishing the 2016 Form 1095-B, Health Coverage, along with the 2016 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage to individuals, from Jan. 31, 2017, to March 2, 2017.
The notice also includes transitional good-faith relief from the penalties imposed by sections 6721 and 6722 of the Tax Code relating to the 2016 information reporting requirements under sections 6055 and 6056.
Greatland, a company that specializes in W-2 and 1099 information reporting, is advising employers to take note of the extensions, but to continue their preparations as if the deadline had not been extended, so they can ensure compliance and avoid penalties from the IRS.
“While we expect this deadline change to have minimal impact to the far majority of our customers, we still are encouraging businesses to not wait until the last minute, which can lead to mistakes or missing the deadline, event with the extension,” said Greatland CEO Bob Nault in a statement. “Failure to file 1095 forms for the 2016 tax year could be very costly for businesses.”
This is the second year in a row that the IRS has decided to keep the good faith transition relief in place to give filers additional leniency to file properly. The 30-day extension gives employers and issuers an extra month to provide individuals with forms reporting on offers of health coverage and the coverage that is provided.
The due dates for 1095-B and 1095-C deadlines are Feb 28, 2017 for paper 1095 forms with the IRS; March 2, 2017 for 1095 copies to be sent to recipients and employees; and March 31, 2017 to e-file 1095 forms to the IRS.
ACA reporting is still required for 2016, though the good faith transition relief from 2015 has been extended for 2016, Greatland noted. The ACA reporting requirements for 2016 have not changed, but there is a little more time now to fulfill the requirements.