Extension Announced for ACA Form 1095 Deadline

In a surprise move on November 18, the IRS announced that employers subject to the Affordable Care Act’s (ACA’s) information-reporting requirements have until March 2, 2017 (as opposed to Jan. 31), to deliver individual statements on 2016 health coverage to their employees.

The extra 30 days was provided because the IRS and the Treasury Department determined additional time was needed for information collection and analysis so that the forms (the 1095-B and 1095-C) could be properly prepared. The announcement (Notice 2016-70) also states that, like last year, employers will not be penalized for incorrect or incomplete forms as long as they can demonstrate good-faith efforts to adhere to ACA requirements.

There are a few important stipulations and considerations. The new deadline only covers those copies supplied to employees; the deadlines to file these forms with the IRS have remained unchanged (Feb. 28 for paper versions and March 31 for electronic versions of Forms 1094-B and 1094-C). The extension applies only to the 2016 tax year and is not permanent. Additionally, the IRS encouraged employers to release these statements to their employees as soon as possible instead of waiting until March 2.

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