Employers subject to ACA information reporting now have some extra time to furnish the required information returns to employees and file the required returns with the Internal Revenue Service (IRS). The IRS in Notice 2016-4 provided that the due dates for certain ACA returns are extended as follows:

Previous Due Date New Due Date
Forms 1095-B and 1095-C were due to employees by Feb. 1, 2016 March 31, 2016
Forms 1094-B, 1095-B, 1094-C and 1095-C were required to be filed with the IRS if filing on paper by Feb. 29, 2016 May 31, 2016
Forms 1094-B, 1095-B, 1094-C and 1095-C were required to be filed with the IRS if filing electronically by March 31, 2016 June 30, 2016

Reports and filing requirementsEven though the deadlines for providing and filing the returns are being extended, the IRS will be ready to accept the ACA information returns beginning in January 2016. The IRS encourages employers to provide and file returns as soon as they are able.

Form 1095-B: Reports information to the IRS and individuals about individuals who are covered by minimum essential coverage and therefore are not liable for the individual mandate penalty. Form 1095-B are prepared and issued by the health insurance provider.

Form 1095-C: Reports issued by applicable large employers to employees and the IRS reporting whether a qualifying offer of health insurance has been made to employees. This information is used to determine whether the employer mandate penalty is applicable and if an employee is eligible for premium tax credits.

Form 1094-B: Transmittal form for Form 1095-B.

Form 1094-C: Transmittal form for Form 1095-C.

Impact on individual tax returns

Given the extended deadline, it is possible that an employee may not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns. Notice 2016-4 provides that for 2015, individuals who rely on other information received from employers about their offers of health insurance coverage for purposes of determining eligibility for the premium tax credit when filing their tax returns do not need to amend their tax returns once they receive their Forms 1095-C or any corrected Forms 1095-C. Also for 2015, individuals who rely on other information received from their coverage providers about their coverage for purposes of filing their returns need not amend their returns once they receive Form 1095-B or Form 1095-C or any corrections. According to the guidance, individuals do not have to include any of the new forms when filing their returns but should keep it with their tax records.

Jonathan C. Landon
Jonathan Landon is an Attorney and Vice President with Shuttleworth & Ingersoll, P.L.C. Jon advises individuals, businesses, and tax-exempt organizations in: Federal and state tax matters; general business transactions; deferred compensation and employee benefits; and estate and succession planning.