IRS Relief Alleviates Some—But Not All—ACA Reporting Issues

IRS Relief Alleviates Some—But Not All—ACA Reporting Issues

As employers gear up for another round of Affordable Care Act (Forms 1094 and 1095) reporting, they should consider guidance that may have been issued too late in the last reporting cycle for them to take into account but could provide partial relief for this annual headache this time around. The guidance makes it permissible for employers to post a website notice of availability of Forms 1095-B and 1095-C (Notice of Availability or Notice) with respect to the ACA forms rather than distributing the forms to every individual. This posting can be a useful cost-saving tool, but keep in mind that some states now have their own reporting requirements that may still require the ACA forms or similar state-issued forms to be automatically provided to individuals.

Notice of Availability: The Paperwork Burden Reduction Act, which was passed in December 2024, offers employers the choice to post a Notice of Availability rather than deliver a form to each individual. The Internal Revenue Service (IRS) issued guidance regarding this Notice option in February 2025. Because of this timing, some employers were not able to take advantage of the relief in connection with 2024 reporting. However, as the due date for reporting on 2025 approaches, employers should review this relief and determine whether they want to – and can -- take advantage of the opportunity this year. 

To avoid sending forms to all individual recipients, employers must:

• Post a Notice of Availability that is clear and conspicuous, in a location on the company’s website that is reasonably accessible to anyone who should receive a form. The Notice must use a font size large enough to call a viewer’s attention to the information. For example, a statement on the main page or a link on the main page could read “Tax Information.” The page with the actual instructions could include a statement in all capital letters, “IMPORTANT HEALTH COVERAGE TAX DOCUMENTS.”
• Include in the Notice of Availability:

1. A statement that the individual may obtain a paper copy of the Forms 1095-B and 1095-C upon request;
2. An email address or physical address to which a request for a paper statement can be sent; and
3. A telephone number that the individual can use for questions.

Deadlines: Employers who choose to publish the Notice of Availability in lieu of delivery to their employees must post a compliant Notice no later than March 2, 2026, with respect to 2025 coverage. The posting must remain on the website until at least October 15, 2026.

Reporting to the IRS Remains in Place: Remember, the Notice of Availability applies only to forms that are required to be sent to employees. Employers must continue to submit ACA forms to the IRS by the requisite deadline.

State Law Requirements: Several states, including California, New Jersey, Rhode Island, Massachusetts, and Washington, D.C., have separate reporting and filing requirements with respect to employer health coverage. Employers seeking to comply with these state laws should keep in mind that they may vary from the federal rules with regard to timing and other requirements.

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