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IRS Eases ACA Filing Requirements for Employers

by Pat Collopy on Dec 9, 2016 1:04:19 PM

The IRS has announced two measures to ease Affordable Care Act (ACA) requirements for applicable large employers (ALE) this year.

The first measure extends the due date for distributing to employees the 2016 Form 1095-B, (Health Coverage), and Form 1095-C, (Employer-Provided Health Insurance Offer Coverage), from January 31, 2017 to March 2, 2017.

This extension does not change the deadline for filing Forms 1094 and 1095 with the IRS. The deadline for employers to file Forms 1094-B, 1094-C, 1095-B or 1095-C with the IRS remains February 28, 2017, (if filing by mail) or March 31, 2017, (if filing electronically).

As a result of this measure, individuals do not need to wait to receive Forms 1095-B and 1095-C before filing their personal tax returns.

The IRS also extended “good faith transition relief” and announced it will not penalize employers for incorrect or incomplete forms if they can demonstrate good-faith efforts to comply with the reporting requirements. Good-faith efforts, which can help employers avoid substantial penalties, include filing on time, as well as making reasonable efforts to prepare the required information for reporting and furnishing it to employees and covered individuals. The IRS will also take into account the extent to which the employer or coverage provider is taking steps to ensure ability to comply with reporting requirements in 2017.

Both measures were issued by the IRS on November 18, 2016, in Notice 2016-70.


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