IRS Extends Due Dates for ACA Reporting Requirements

Andrew Spikes, CPA

Employers and other organizations responsible for reporting information to comply with the Affordable Care Act can breathe a brief sigh of relief. On Monday, December 28 the IRS extended the due dates for insurance reporting in Notice 2016-4.

Insurers, self-insuring employers, other coverage providers and applicable large employers previously had a February 1, 2016 deadline to provide individuals with 1095-B and 1095-C forms. The deadline is now extended to March 31, 2016 for providing 1095 forms to individuals. Likewise, the deadlines for filing the associated 1094 forms with the IRS have been extended to May 31, 2016 if filing on paper and June 30, 2016 if filing electronically. The IRS will be prepared to accept the forms starting in January 2016 and encourage filing before the extended deadline if the forms are ready in advance.

Employers and other coverage providers that do not file their forms in a timely manner will be subject to IRS penalties. However, if employers and others proceed to furnish and file the necessary forms, albeit late, the IRS will accept them and take the furnishing and filing into consideration when considering any penalties.

Individuals who typically file their income tax return early need not wait for these forms to arrive in order to file. The IRS has indicated that many individuals will not be affected by the 1095 deadline extension and may file their income tax returns without having the forms, but should retain the 1095 forms in their 2015 tax file for future reference.