The IRS has announced an unexpected and welcome extension of the 2019 due date for certain entities to provide 2018 health coverage information Forms 1095-B or 1095-C to employees and individuals. Good-faith penalty relief is also extended to the 2018 Forms. Visit this IRS webpage for information on the health coverage forms requirement.
Forms to Employees/Individuals
Insurers, self-insuring employers, other coverage providers, and applicable large employers (ALEs) now have until March 4, 2019 to provide Forms 1095-B or 1095-C to employees and individuals. The IRS has announced that further extensions beyond this new due date will not be available and the IRS will not be formally responding to extensions that have already been requested by reporting entities. The extension for filing Forms 1095-B or 1095-C to individuals is automatic. Employers and providers don’t have to request it. The IRS will not grant an additional 30-day extension beyond this deadline.
Forms to IRS
The due dates for filing 2019 Forms 1094-B, 1095-B, 1094-C or 1095-C with the IRS are not extended. Therefore, employers filing by paper must submit their Forms to the IRS by February 28, 2019. Those filing electronically have until April 1, 2019. As a reminder, employers and coverage providers who are filing more than 250 of these reporting forms are required to file electronically.
Good-Faith Penalty Relief
Employers and coverage providers who work in good faith to complete the Forms will not be assessed penalties due to missing or inaccurate information. This relief applies only to missing and inaccurate information required on the Forms and does not provide relief in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due dates.
The ACA information reporting requirements remain in effect, despite the repeal of the “individual mandate” beginning in 2019, as the IRS uses the reporting to administer the employer mandate and premium tax credit program. We will continue to monitor developments under the ACA and provide details on new and revised employer obligations as they take shape over time. Should you have questions about this or any aspect of federal health insurance reform, contact your Conner Strong & Buckelew account representative toll free at 1-877-861-3220. For a complete list of Legislative Updates issued by Conner Strong & Buckelew, visit our online Resource Center.