IRS Extends Deadlines for Affordable Care Act Reporting

January 5, 2016

The Affordable Care Act (“ACA”) amended the Internal Revenue Code (“Code”) to require health coverage information reporting under Code § 6055 for health insurance issuers, self-insuring employers, government agencies, and other providers of minimum essential coverage to report the coverage provided; and under Code § 6056 for applicable large employers (typically those with 50 or more full-time and full-time equivalent employees in the previous year) to report the health insurance offered or not offered to full-time employees. Regulations under Code § 6055 and § 6056 require that a written statement be furnished to individuals by January 31 of the following calendar year and that information returns be filed with the IRS by February 28 or, if filing electronically, March 31 of the following calendar year using Form 1094-B, Transmittal of Health Coverage Information Returns, and Form 1095-B, Health Coverage, for reporting under Code § 6055 and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, for reporting under Code § 6056.

Last week, the IRS released Notice 2016-4, which provides some relief by delaying for insurers and applicable large employers the upcoming reporting deadlines under the ACA. The new deadlines are:

(1) for furnishing to individuals the 2015 Form 1095-B and the 2015 Form 1095-C:

    • from February 1, 2016, to March 31, 2016, and

(2) for filing with IRS the 2015 Form 1094-B, the 2015 Form 1095-B, the 2015 Form 1094-C, and the 2015 Form 1095-C:

    • from February 29, 2016, to May 31, 2016, if not filing electronically; and
    • from March 31, 2016, to June 30, 2016, if filing electronically.

Employers, or other coverage providers, that do not comply with these extended due dates are subject to penalties for failure to timely furnish and file health coverage information reporting.

These delays are due to the complexity and confusion that surrounds the new health care coverage information reporting under the Code. Dykema’s employee benefits attorneys can assist you with answers to your difficult and detailed ACA reporting questions. We are working constantly with clients to help document ACA compliance, provide strategies for health plan sponsors, and educate employers of fiduciary issues with group health plans. Please contact one of Dykema’s employee benefit attorneys to learn how we can help make ACA reporting easier and assist you with documenting a good faith and reasonable effort of health coverage information reporting.

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