Filing Deadline for Forms 1095-B and 1095-C Extended; IRS Issues Request for Comments for Continued Need of Extension

The Treasury Department and the IRS have issued Notice 2020-76 that extends the due date for furnishing the 2020 Forms 1095-B and 1095-C to individuals, from January 31, 2021, to March 2, 2021, a 30-day extension. No additional extensions will be granted, even if requested by a reporting entity.

This notice does not extend the due date for filing the 2020 forms with the IRS. Employers and coverage providers (insurers) are encouraged to provide 2020 statements as soon as possible.

Due to the individual shared responsibility penalty being zero again for 2020, the IRS has continued 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:

  • First, the reporting entity must post a notice prominently on its website stating that responsible individuals may receive a copy of their 2020 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.
  • Second, the reporting entity must furnish a 2020 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received. The reporting entity may furnish these statements electronically if it meets specific requirements.

This 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. However, it is important to note 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 relief for furnishing forms to individuals; coverage providers and ALEs will still have to report enrollment information to the IRS.

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. As this good-faith relief was intended to be transitional relief, this is the last year the Treasury Department and the IRS intend to provide this relief.

Finally, the Treasury Department and the IRS are requesting comments related to furnishing statement requirements under sections 6055 and 6056. Unless comments are received that explain why this relief continues to be necessary, no relief related to the furnishing requirements under sections 6055 and 6056 will be granted in future years.

Taxpayers and reporting entities are strongly encouraged to submit comments electronically via the Federal eRulemaking Portal at www.regulations.gov (type “IRS- 2020-0037” in the search field on the regulations.gov homepage to find the notice and submit comments).

Alternatively, taxpayers and reporting entities may mail comments to:

Internal Revenue Service

Attn: CC:PA:LPD:PR (Notice 2020-76) Room 5203

P.O. Box 7604

Ben Franklin Station

Washington, D.C. 20044

Comments must be submitted by February 1, 2021.