The IRS extended the deadline for reporting entities (applicable large employers and entities providing minimum essential coverage, including employers sponsoring self-insured group health plans) for providing individuals with Forms 1095-B and 1095-C for the 2016 reporting year. See IRS Notice 2016-70 available here.
These forms were previously due to individuals no later than January 31, 2017. The deadline for providing these forms to individuals is now March 2, 2017.
Prior to this extension, reporting entities had the ability to request a 30 day extension for providing forms to individuals (see Treas. Reg. §§1.6055-1(g)(4)(i)(B)(1) and 301.6056-1 (g)(1)(ii)(A) ). In light of the automatic extension as described above, reporting entities may no longer request this extension.
Please note: There is currently no extension for filing these forms with the IRS. The deadline for filing via mail is February 28, 2017. The deadline for electronic filing is March 31, 2017.
Application of Good Faith Efforts Standard
For 2015, the IRS applied a “good faith efforts” standard (as set forth in the preamble to Sections 6721 and 6722 regulations) to the 1094/1095 reporting requirements. This meant that entities providing forms to individuals or filing forms with the IRS would not be subject to penalties if they made good faith efforts to comply with the filing requirements. (Note: this relief applied only to forms timely provided to individuals and/or timely filed).
The IRS is extending this good faith standard to reporting for the 2016 reporting year. As a result, reporting entities may avoid penalties for incorrect information contained on Forms 1094/1095 if they are timely provided to individuals and/or timely filed and the reporting entity made good faith efforts to comply with the reporting requirements.
Please contact us if you have any questions or need assistance with 2016 reporting.