Recently, the IRS released Notice 2019-63, which extends the deadline for furnishing 2019 Forms 1095-B and 1095-C to individuals, as required by the Affordable Care Act. The original deadline was January 31, 2020; the extended deadline is March 2, 2020, a 30-day extension when taking into account the leap year. Because they are allowing all employers extra time, the IRS will not permit or respond to any applications for individual extensions.
The due dates for applicable large employers (ALEs) to file 2019 information returns with the IRS were not extended. Paper filers must file the returns by February 28, 2020, and electronic filers by March 31, 2020.
The notice also extends relief from penalties imposed on entities that report incorrect or incomplete information either to individuals or on returns filed with the IRS, as long as the entity can show they made good faith efforts to comply with reporting requirements.
Also, due to the individual shared responsibility penalty being reduced to zero for 2019, the IRS has expanded relief for enrollment information since individuals will not need this information to file their federal tax returns. The notice states that the IRS will not assess a penalty against coverage providers for failing to furnish Form 1095-B to individuals if two conditions are met:
- The reporting entity posts a notice prominently on its website stating that responsible individuals may receive a copy of their 2019 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 furnishes a 2019 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received.
This expanded relief will mostly only impact employers with fully-insured plans whose carrier provides Form 1095-B to its employees to comply with section 6055 reporting requirements. If an employer with a fully-insured plan is considered an applicable large employer (ALE), the responsibility to complete Form 1095-C Parts I and II still exists. It is important to note, however, that the IRS stresses that this relief does not apply to a self-insured ALE’s obligation to continue to provide enrollment information to their full-time employees and dependents. As background, ALEs that offer self-insured health plans are required to use Form 1095-C, Part III to meet the section 6055 reporting and provide enrollment information. This requirement is also only a relief for furnishing forms to individuals, coverage providers and ALEs will still have to report enrollment information to the IRS.
This extension should come as relief for employers working diligently to comply with the ACA reporting requirement. Contact Employers Council with questions about this extension or completion of the 1095 forms.