IRS Extends ACA Reporting Deadline for Furnishing Statements for 2021 for 30 days
| November 24, 2021 |
In proposed regulations released on November 22, 2021, the IRS permanently and automatically extends the deadline for 30 days from January 31, 2022 each year for employers and insurers to furnish individual statements on health coverage and full-time employee status (Forms 1095-B and 1095-C). This new requirement applies to the 2021 reporting (March 2, 2022).
The proposed regulations do not extend the good-faith penalty relief to 2021 for incorrect or incomplete reports due in 2022.
In the proposed regulations, the IRS did not extend the due date for filing the 1094 and 1095 forms with the IRS, February 28, 2022 (if filing by paper) or March 31, 2022 (if filing electronically).
Please remember that filers can still take advantage of an automatic 30-day extension of the IRS filing deadline by submitting Form 8809 before the relevant due date.
IRS indicated that it will not assess a penalty for providing Form 1095-B if the reporting entity posts a notice prominently on its website stating that responsible individuals may receive a copy of their 2021 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions. The reporting entity must furnish a 2021 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received.
In addition, this alternative manner will apply to taxable years when the employer shared responsibility payment amount is zero.
When the notice is posted on the employer’s website , it must written in plain, non-technical terms and must remain on the website until October 15 of the year following the the calendar year in which the Form relates.
In regard to Applicable Large Employer (ALE) members who sponsor self-insured health plans, the above furnishing relief does not apply to furnishing full-time employees with copies of Form 1095-C. Penalties will continue to be assessed consistent with prior enforcement policies for any failure by ALE members to furnish Form 1095-C, including Part III, according to the applicable instructions.
However, the above furnishing relief does extend to penalty assessments in connection with the requirement to furnish Form 1095-C to any employee enrolled in an ALE member’s self-insured health plan who is not a full-time employee for any month of 2021.
For a copy of regulations, please click on the link below: Information Reporting of Health Insurance Coverage and Other Issues under §§ 5000A, (irs.gov)