ACA Update: IRS Extends Distribution Deadline for 1095 Forms

Note: this post was updated on January 3, 2018.

Just before many employers left the office for December 2017 holiday breaks,  the IRS made the important announcement that they are extending the distribution deadline for 1095 forms. The Equifax ACA team has reviewed the official documentation from the IRS to provide you with the important details you need.

Following consultation with stakeholders, the Department of the Treasury and the IRS have determined that a substantial number of employers and other providers of minimum essential coverage need additional time beyond the January 31, 2018 due date to gather and analyze the information needed to prepare 2017 Forms 1095-B and 1095-C to be furnished to individuals.

On December 22, 2017, the Internal Revenue Service (IRS) released Notice 2018-06, which extends:

1. The due date for furnishing Forms 1095-B and 1095-C to individuals under Internal Revenue Code (IRC) sections 6055 and 6056 from January 31, 2018 to March 2, 2018, and

2. The Good Faith transition relief from penalties under IRC sections 6721 and 6722 to apply for statements and returns for calendar year 2017 that are furnished and filed in 2018.

Due Date for Furnishing Statements to Individuals

The extension for furnishing 2017 Forms 1095-B and 1095-C to individuals means that insurers, self-insuring employers, and certain other providers of minimum essential coverage have until March 2, 2018 to furnish these statements to individuals. Regardless of the extension, the IRS encourages reporting entities to still furnish 2017 statements as soon as they are able. Please note that the extension applies only to statements for calendar year 2017 furnished in 2018 and—unlike the extensions provided for 2015—the deadline to file information returns with the IRS has NOT been extended. The extension for furnishing statements applies automatically, so no request is required, and the IRS stated that they will not formally respond to such requests.

Good Faith

The extension of Good Faith transition relief from penalties under sections 6721 and 6722 relaxes information reporting requirements for both furnishing statements to individuals and filing returns with the IRS. Like in prior years, the extension provides relief to reporting entities that can show that they made good-faith efforts to comply with the information reporting requirements for 2017. Please note that the extension applies only to incorrect and incomplete information reported on 2017 statements and returns, and it does not apply to statements and returns that are not furnished or filed on time. In determining good faith, the IRS will take into account whether the reporting entity made reasonable efforts to prepare for furnishing and filing the required information, such as gathering and providing the necessary data to an agent to prepare for submission, as well as any steps taken to ensure that the entity will be able to comply with the reporting requirements for 2018.