ACA Reporting – Update

The IRS has given employers a deadline delay forAffordable Care Act(ACA) reporting. Here’s a brief re-cap:

What is delayed?

The Internal Revenue Service (IRS) issuedNotice 2018-06and announced a 30-day automatic extension for insurersand employers tofurnish 2017 IRS Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage), from January 31, 2018 to March 2, 2018.

Insurers, self-insuring employers, other health coverage providers, and applicable large employers must furnish statements to employees or covered individuals regarding the health care coverage offered to them. Individuals may use this information to determine whether, for each month of the calendar year, they may claim the premium tax credit on their individual income tax returns. This 30-day extension is automatic. Employers and insurers don’t have to request it.

Because of these extensions, individuals may not receive their Forms 1095-B or 1095-C by the time they are ready to file their 2017 individual income tax return. While information on these forms may assist in preparing a return, the forms are not required to file. Taxpayers can prepare and file their returns using other information about their health coverage. They do not have to wait for Forms 1095-B or 1095-C to file.

What is not delayed?

The due dates for filing 2017 information returns with the IRS are not extended. The due dates to file information returns with the IRS are:

  • Feb. 28, 2018for paper filers
  • April 2, 2018for electronic filers

Another extension

The same IRS notice also extends the“good faith” reliefthrough this reporting cycle. That means employers that submit forms on a timely basis and make a good faith effort to get them right will not be assessedpenaltiesfor errors or incomplete forms. The key is to be timely. The good faith relief is available only to those who submit forms before the deadlines.

Do we really need to do this?

Due to the results of the recent presidential and congressional elections, there is much speculation about the future of ACA. Changing or repealing ACA may be high on the priority list for the new administration, but implementing changes may take a considerable amount of time. The ACA law and regulations are currently in force, and until they are repealed or amended you need to comply with these requirements as they are right now. The potential penalties for not doing so are considerable.

This information is being brought to you by Broker Resources, Inc and the The International Foundation of Employee Benefit Plans. We will continue to monitor and share any and all developments related to ACA. Stay tuned!

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