Employee Benefits Compliance, Large Employers, Reporting Requirements

IRS Delays Information Reporting Deadlines

irs health insurer fees

On December 28, 2015, the IRS issued Notice 2016-4 which extends the deadlines a few months  for Information Reporting.  The extensions apply only for 2016, not for future years.  Here are the changes:

Form to be FiledOriginal due dateNew due date
1095-C to employeesFeb 01, 2016Mar 31, 2016
1094-C to IRS + copies of 1095-C, paper filingFeb 29, 2016May 31, 2016
1094-C to IRS + copies of 1095-C, electronic filingMar 31, 2016Jun 30, 2016

The automatic and permissive extensions of time that were previously offered no longer apply.   Employers or other coverage providers who do not comply with these extended due dates are subject to existing penalties  for failure to timely furnish and file.  (The existing penalties are under IRC sections 6721 and 6722.)

The IRS encourages employers and other coverage providers to furnish statements and file the information returns as soon as they are ready and will still accept filings beginning January 2016.  You don’t have to wait until the extended deadlines to file.

The Notice also provides guidance to individuals who might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns.  For 2015 only, such individuals may rely upon other information received from employers or coverage providers (insurers or self-funded plans) about their offers of coverage for purposes of determining eligibility for the premium tax credit or for filing their income tax returns.  They also do not need to amend their returns or send copies to the IRS once they receive their Forms 1095-C or forms 1095-B or any corrected Forms 1095, but should keep the Forms with their tax records.

Some Information Reporting vendors are stating that due to the delay, they will take on additional clients until they are at capacity.  Please contact your Leavitt advisor immediately if you would like to explore the option of vendors for Information Reporting.

Here is a link to the 8-page Notice:  https://www.irs.gov/pub/irs-drop/n-16-4.pdf

The principal author of this notice is Michael E. Hara of the Office of Associate Chief Counsel (Procedure and Administration). For further information regarding this notice contact Michael Hara at (202) 317-6845 (not a toll-free call).