Yellow Light: IRS Delays Reporting Requirements Again!

Earlier today, the IRS announced an extension of the due dates for IRS Forms 1094 and 1095. In IRS Notice 2016-4, the IRS states that employers are not required to furnish individuals with either Form 1095-B or 1095-C until March 31, 2016. The deadline was previously February 1, 2016. In addition, employers are not required to file Form 1094-B or Form 1094-C with the IRS until May 31, 2016 if filing paper returns, or June 30, 2016 if filing electronically. The prior deadlines were February 29, 2016 (paper) and March 31, 2016 (electronic).

This is now the second delay of the ACA reporting requirements. On July 2, 2013 (coincidentally, also adjacent to a national holiday), the U.S. Department of the Treasury issued a blog post that announced a delay of the ACA shared responsibility penalties and the accompanying reporting requirements until the 2015 taxable year. A copy of my summary of the prior delay is available here.

The IRS now anticipates that many people will now file their individual tax returns (Form 1040) prior to receiving the Form 1095-B or 1095-C from their employers or other coverage providers. Accordingly, the IRS will allow individuals to rely on other information from their employers or other coverage providers for purposes of filing their returns in 2015.

As most large employers are well aware, the IRS Forms 1094-C and 1095-C are complicated and impose significant administrative burdens. Any delay or simplification of these forms is welcome news. However, at this point, the IRS has lost all credibility on ACA matters, after insisting that there would be no delay of the 2015 reporting deadlines. It is now manifestly clear that the IRS is struggling with the ACA shared responsibility rules as much as the rest of the country.

Please consult your attorney or contact Jim Hamilton at Bose McKinney & Evans with any questions on this issue.

About Jim Hamilton

I am an employee benefits partner with Bose McKinney & Evans LLP. My broad-based practice covers health and welfare arrangements, insurance, executive compensation and federal and state taxation. Among other areas, I have specific experience with PPACA, HIPAA, COBRA, ERISA and numerous other state and federal laws affecting employee benefit plans.
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