On Friday the Internal Revenue Service (IRS) announced that for the second year it is delaying the deadline for distributing the individual reporting statements required by the Affordable Care Act (ACA). In Notice 2016-70, the IRS provided reporting entities a 30-day extension on the deadline for providing 2016 Forms 1095-B and Forms 1095-C (or substitute statements) to individuals, pushing the deadline from January 31, 2017 to March 2, 2017. Unlike last year, however, there is no extension on the deadline for reporting to the IRS.
Background
The ACA imposes annual information reporting requirements on employers, health plan sponsors, and insurers (section 6055 and section 6056 reporting) to assist the IRS in administering compliance with the individual and employer shared responsibility mandates of the ACA and confirming individuals’ eligibility for Marketplace subsidies. Reporting entities must complete a form for each individual for which reporting is required, must provide a copy to the individual, and must submit all forms to the IRS along with at least one transmittal cover form with summary information about the reporting entity. Below is a summary of the various reporting deadlines:
| Original Due Date | New Due Date | |
|---|---|---|
| Statements to individuals | January 31, 2017 | March 2, 2017 |
| IRS filing | February 28, 2017 (paper) March 31, 2017 (electronic) | No change No change |
Regulations under Sections 6055 and 6056 generally allow reporting entities to request certain extensions for reporting due dates. Notice 2016-70 indicates those provisions do not apply to the new March 2, 2017 due date for individual statements, but will still apply for the unchanged due dates for filing with the IRS
Additionally, the IRS noted in Notice 2016-70 that it will extend the transition relief provided last year, wherein the IRS will not impose penalties on a reporting entity for reporting incorrect or incomplete information if reporting is filed timely and the reporting entity can show it made good faith efforts to comply with the reporting requirements. Reporting entities that do not meet the due dates will be subject to penalties. When determining whether to abate penalties for reasonable cause, the IRS will take into consideration whether the reporting entity made reasonable efforts to prepare for reporting and the extent to which the reporting entity is taking steps to ensure it is able to comply with 2017 reporting requirements.
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Your Trion Strategic Account Managers are here to answer any questions you might have as you prepare to comply with upcoming ACA requirements. If you are not currently a Trion client and would like assistance navigating the changes required by health care reform, please contact us today by emailing [email protected]