Legal Alert

A Little Extra: IRS Ups ACA Reporting Relief

December 5, 2019

Once again, the IRS has extended the deadline for furnishing Forms 1095-B and 1095-C to individuals. Reporting penalties will not apply to those who meet the applicable deadlines and complete the forms in good faith.

The deadlines for reporting information for 2019 are:

  • Deadline for providing Forms 1095-B and 1095-C to individuals: March 2, 2020
  • Deadline for filing paper Forms 1094-B, 1095-B, 1094-C, and 1095-C with IRS: February 28, 2020
  • Deadline for filing electronic Forms 1094-B, 1095-B, 1094-C, and 1095-C with IRS: March 31, 2020

The notice announcing these rules contains an additional measure of relief. In view of the elimination of the penalty on individuals who failed to obtain minimum essential coverage, insurers will no longer be penalized for failing to furnish individuals Form 1095-B if they prominently post a notice on their website about how individuals may request Form 1095-B and furnish the form within 30 days of an individual’s request.

This relief does not extend generally to employers that sponsor self-funded plans. They must continue to furnish Form 1095-C to full-time employees and continue to complete Part III of that form, with information about satisfaction of the individual mandate. However, subject to the same rules that apply to insurers, they will not be penalized if they do not provide this information to employees who are enrolled for health coverage, but are not full-time.  

The relief applies only to the provision of forms to individuals and does not affect the requirement for insurers or employers to file the forms with the IRS. Insurers and other affected plan sponsors also need to be aware of non-federal laws (currently in New Jersey and Washington, D.C.) that continue to require them to distribute the information contained in Form 1095-B to individuals in support of state and local mandates for individuals to obtain health coverage.

The IRS also issued drafts of the forms for reporting information for 2019. These drafts are expected to be finalized soon. They include:

Ballard Spahr’s Employee Benefits and Executive Compensation attorneys can advise employers and health insurers on compliance related to the ACA reporting requirements.

Ballard Spahr attorneys established the Health Care Reform Dashboard as a one-stop resource under the Affordable Care Act. We have expanded the scope of the Dashboard to include other laws, but continue the mission of providing our readers with information about significant changes affecting health care and health benefits in the United States and to establish a repository for analysis and original source material of significant developments that have occurred over time. Change is ongoing, and we will continue to update the Dashboard to reflect new legislation, administrative guidance, and judicial decisions as they are published.

Copyright © 2019 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

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