Extended Deadline & Penalty Relief for ACA Reporting under Section 6055 & 6056

The IRS has extended the deadline for furnishing individual statements under Sections 6055 and 6056 for 2018 and has also extended good-faith transition relief from penalties related to 2018 information reporting under Sections 6055 and 6056.

Notice 2018-94 extends the due dates for certain 2018 information reporting requirements for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 and for applicable large employers under section 6056. Specifically, this notice extends the due date for furnishing to individuals the 2018 Form 1095-B, Health Coverage, and the 2018 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2019, to March 4, 2019. This notice also extends transitional good-faith relief from section 6721 and 6722 penalties to the 2018 information reporting requirements under sections 6055 and 6056. The notice does NOT however extend the deadline for filing ACA forms with the IRS, see deadlines below.

Filers are not required to submit any request or other documentation to take advantage of the extended deadline for furnishing the individual statements. Since this extended deadline applies automatically to all reporting entities, the IRS will not grant additional extensions of time to furnish Forms 1095-B and 1095-C.

FILING WITH THE IRS

The deadline for filing Forms 1094-B, 1095-B, 1094-C and 1095-C with the IRS remains:

  • February 28, 2019, if filing on paper; or
  • April 1, 2019, if filing electronically

Because the due dates are unchanged, potential automatic extensions of time for filing information returns are still available under the normal rules by submitting a Form 8809.

INDIVIDUAL TAX RETURNS

Individuals do not need to wait to receive Forms 1095-B and 1095-C before filing their returns. Taxpayers may rely on other information received from their employer or other coverage provider for purposes of filing their returns. In addition, individuals do not need to send forms or other information to the IRS when filing their returns but should keep these items with their tax records.

PENALTY RELIEF

As with prior returns, the IRS has once again extended transition relief for providing incorrect or incomplete information to reporting entities that can show that they have made good-faith efforts to comply with the Sections 6055 and 6056 reporting requirements for 2018 (both for furnishing to individuals and for filing with the IRS).

This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. No relief is provided however for reporting entities that:

  • Do not make a good-faith effort to comply with the regulations; or
  • Fail to file an information return or furnish a statement by the due dates

Source: Internal Revenue Service (IRS)